SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,000/tonne (t) (- INR 200) exw Rourkela on 23 August, 2022.
About 1,800 t of transactions in CDRI were recorded by SteelMint today against 1,370 t on 22 August.
Although the index decreased, trades rebounded slightly as buyers started making purchases again. Today’s spot trading volumes increased by 31% compared with yesterday.
Deals were minimal, though, and they were concluded both for Bihar as well as the local market, according to sources.
Trade dynamics
- Sponge iron prices softened a bit amidst falling steel prices, especially in Punjab. However, the rise in steel prices in the latter half today prompted market participants to take positions and book material.
- Premium grade sponge iron (FeM 81-82) was offered to Jalna-based buyers at INR 37,000–37,200/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) – Four trades in the range of INR 35,800-36,000/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 35,973/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty five offers reported in the trading window and considered as T2 inputs. The average price of these twenty five was INR 36,003/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,988/t, rounded to INR 36,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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