SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,550/tonne (t) (- INR 150) exw Rourkela on 9 June, 2022.
About 4,100 t of transactions in CDRI were recorded by SteelMint today as against 2,390 t on 8 June.
As the index continued to move downwards, buyers remained active in booking material as per their requirements, which led to the rise in spot trade volumes d-o-d.
However, there is lack of confidence among market participants as regards sponge iron price movements. Due to the fear of uncertain price correction, spot trades continue to witness fluctuations, 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) – Nine trades in the range of INR 31,450-32,000/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 31,539/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 31,535/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,537/t, rounded to INR 31,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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