SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,200/tonne (t) (=) exw Rourkela on 22 August, 2022.
About 1,370 t of transactions in CDRI were recorded by SteelMint today as against 820 t on 20 August.
Market participants are unsure about the direction of price changes and, as a result, spot trades remained on the lower side.
Trade dynamics
- SteelMint has learned from sources that buyers are only ordering material that they need on an urgent basis, while the price adjustment continues.
Rationale –
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) – Four trades in the range of INR 36,000-36,500/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,284/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 36,154/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,219/t, rounded to INR 36,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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