SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,200/tonne (t) (- INR 350) exw-Rourkela on 20 August, 2022.
About 820 t of transactions in CDRI were recorded by SteelMint today against 700 t on 19 August.
The index fell on account of weak trade activity reported today. Buying interest in the semi-finished and finished steel market also remained dull today.
Thus, spot buying interest totally hinges on the requirements of market participants, sources informed to SteelMint.
Trade dynamics
- Purchase enquiries from market participants in Bihar decreased today amidst falling steel prices in the Punjab market, which pushed producers to reduce offers.
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%.3
- Transactions (T1) – Four trades in the range of INR 36,000-36,300/t were recorded during the 11:30 am to 4:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,122/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 36,258/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,190/t, rounded to INR 36,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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