SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,950/tonne (t) (- INR 50) exw Rourkela on 6 June, 2022.
About 1,000 t of transactions in CDRI were recorded by SteelMint today as against 3,520 t on 4 June.
The index fell on account of limited trades as buyers are engaged in need-based procurement to fulfil immediate requirements. Spot buying interest was weak today.
Moreover, uncertain price movement remained a key factor behind dull trade volumes.
Going forward, market participants are waiting for prices to stabilise.
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 31,900-32,100/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 31,967/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 31,958/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,963/t, rounded to INR 31,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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