SteelMint’s daily sponge iron, CDRI index was assessed at INR 34,450/tonne (t) (+ INR 450) exw Rourkela on 7 July, 2022.
About 4,100 t of transactions in CDRI were recorded by SteelMint today against 4,460 t on 6 July.
The index rose as manufacturers hiked domestic sponge iron offers and, given active demand, producers are keeping prices higher.
Sources are expecting sponge iron prices to remain strong as producers have healthy orders in hand along with seasonally low productivity and tight supplies.
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) – Ten trades in the range of INR 34,100-34,800/t were recorded during the 11:30 am to 5:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 34,418/t which is given a 50% weightage in the final price calculation.
- Other price indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these 14 was INR 34,494/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw-Rourkela was at INR 34,456/t, rounded to INR 34,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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