SteelMint’s daily sponge iron, CDRI, index was assessed at INR 35,700/tonne (t) (- INR 400) exw Rourkela on 25 August, 2022.
About 6,250 t of transactions in CDRI were recorded by SteelMint today as against 4,715 t on 24 August.
Despite the index declining, trades in the spot market remained buoyant. Later in the day, steel prices in Punjab rose, prompting buyers to take positions and book material accordingly.
Trade dynamics
- With enough orders in hand, market participants in Patna only made need-based bookings.
- Buyers from Jalna placed a significant number of orders for premium quality sponge iron (FeM 81-82%) at INR 36,700-37,000/t exw Rourkela.
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) – Seven trades in the range of INR 35,600-36,000/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 35,716/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty one offers reported in the trading window and considered as T2 inputs. The average price of these twenty one was INR 35,730/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,723/t, rounded to INR 35,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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