SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,900/tonne (t) (+ INR 100) exw-Rourkela on 15 June, 2022.
About 6,000 t of transactions in CDRI were recorded today against 2,320 t on 14 June.
A significant improvement in spot trade was seen today compared to yesterday. Several deals were concluded for Patna.
Purchase enquiries increased today amidst rising steel prices in the Punjab market, which pushed producers to float offers at higher levels.
Overall, market participants are still unclear about the price movements but due to the approaching monsoon, buyers have raised enquiries to keep sufficient stock of raw materials, SteelMint learnt from sources.
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) – Fifteen trades in the range of INR 31,600-32,000/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 31,867/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 31,955/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,911/t, rounded to INR 31,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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