SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,750/tonne (t) (+ INR 250) exw Rourkela on 12 July, 2022.
About 5,550 t of transactions in CDRI were recorded by SteelMint today against 8,630 t on 11 July.
The index rose on account of supply shortage in the spot market. Amidst the bullish outlook, prices are trending higher, which led producers to quote higher offers, SteelMint notes.
Looking at these factors, market participants believe that sponge iron prices are likely to remain supported in the domestic market.
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) – Eleven trades in the range of INR 36,300-37,050/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 36,751/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 36,710/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,731/t, rounded to INR 36,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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