SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,700/tonne (t) (- INR 100) exw-Rourkela on 13 August, 2022.
About 1,620 t of transactions were recorded today against 4,250 t on 12 August.
The index fell on limited trades due to lack of buying interest among participants. Buyers booked sufficient orders over the past couple of days and hence, major buyers held back their bids and booked the material on need basis, SteelMint learnt from sources.
Trade dynamics
- Participants from Bihar reported limited bookings due to higher 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%.
- Transactions (T1) – Five trades in the range of INR 36,500-37,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,738/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 36,706/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,722/t, rounded to INR 36,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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