SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,900/tonne (t) (- INR 100) exw Rourkela on 20 June, 2022.
About 2,050 t of transactions in CDRI were recorded by SteelMint today as against 1,700 t on 18 June.
The index dropped further following price correction in north India. A significant decline in steel prices in Punjab turned market sentiments sluggish, resulting in limited enquiries and a fall in offers.
Thus, spot trades remained limited amid low buying interest, SteelMint learned 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) – Seven trades in the range of INR 31,700-32,000/t were recorded during the 11:30 am to 5:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 31,893/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 31,869/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,881/t, rounded to INR 31,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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