SteelMint’s daily sponge iron, CDRI, index was assessed at INR 37,000/tonne (t) (- INR 300) exw-Rourkela on 17 August, 2022.
About 2,920 t of transactions in CDRI were recorded by SteelMint today against 3,700 t on 16 August.
The index dropped on limited enquiries from market participants. This resulted in less than average spot trades, which ultimately led to softening of offers by the suppliers.
Trade dynamics
- Market participants from Bihar were less confident about booking the material due to volatile price movements. Thus, limited spot trades happened. Buyers are making need-based bookings.
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) – Eight trades in the range of INR 36,900-37,300/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 36,989/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 36,970/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,980/t, rounded to INR 37,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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