SteelMint’s daily sponge iron, CDRI, index was assessed at INR 35,100/tonne (t) (+ INR 100) exw-Rourkela on 3 September, 2022.
About 1,620 t of transactions were recorded today as against 3,400 t on 2 September.
Although the index edged up, spot trades declined today compared with yesterday, and demand slowed down following increased offers. The prime reason was also the persistent decline in steel prices in the northern region, which impacted overall prices.
Sources told SteelMint that despite the unpredictable volatility in prices in the northern region, the major buyers were hesitant about taking positions which resulted in dull trades.
Trade dynamics
- A few Patna-based buyers stuck to their purchases today after placing enough orders recently.
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) – Six trades in the range of INR 35,000-35,300/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 35,154/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 35,088/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,121/t, rounded to INR 35,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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