SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34.800/tonne (t) (- INR 100) exw-Rourkela on 31 August, 2022.
About 1,420 t of transactions were recorded today against 1,800 t on 30 August.
The index edged lower amid sluggishness in the market on account of a holiday. The majority of participants were inactive today which resulted in limited spot trade volumes.
Trade dynamics
- Buyers from Patna market were mostly silent which led to weak trading activity today.
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 34,700-35,000/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 34,827/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 34,744/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,786/t, rounded to INR 34,800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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