SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,650/tonne (t) (- INR 100) exw-Rourkela on 13 July, 2022.
About 4,540 t of transactions in CDRI were recorded by SteelMint today against 5,550 t on 12 July.
The index fell slightly due to falling steel billet prices. However, in terms of demand it remained active at current offers. Good bookings were seen from the Maharashtra market today and a bunch of transactions were reported, sources informed SteelMint.
Going forward, the price movement of sponge iron will depend largely on billets and coal prices. Also, the availability of sponge iron will play an important role in the spot market.
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) – Ten trades in the range of INR 36,500-36,800/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 36,674/t which is given a 50% weightage in the final price calculation. Apart from this, one trade at INR 36,550/t was also recorded at 11:03 am, but was excluded due to timing.
- Other price indicators Bids/offers/indicative (T2): Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these 11 was INR 36,586/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw-Rourkela was at INR 36,630/t, rounded to INR 36,650/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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