SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,700/tonne (t) (- INR 300) exw Rourkela on 8 June, 2022.
About 2,390 t of transactions in CDRI were recorded by SteelMint today as against 4,050 t on 7 June.
The index moved down amidst ongoing price volatility. Buyers tended to resist offers floated by the suppliers.
Spot trades were limited and reported a drop on a day-on-day basis, as only need-based procurement was being done by market participants.
Overall, trade volumes are expected to regain momentum once sponge iron prices stabilise, sources informed SteelMint.
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) – Eight trades in the range of INR 31,500-31,850/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 31,716/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 31,679/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,698/t, rounded to INR 31,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply