SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,100/tonne (t) (+ INR 100) exw Rourkela on 24 August, 2022.
About 4,715 t of transactions in CDRI were recorded by SteelMint today against 1,800 t on 23 August.
During the first half today, the index improved marginally as a result of better trades on rising steel prices in the northern region; but, later on demand slowed down on higher offers.
According to the daily price assessment by SteelMint, the price of billet in Rourkela increased by INR 150/t d-o-d.
Trade dynamics
- Around 34% of the total quantity was booked by market participants from Patna.
- 36% of today’s total trading volume went to buyers from Jalna where premium quality sponge iron (FeM 81-82%) was traded at INR 37,100–37,200/t on exw Rourkela basis.
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) – Twelve trades in the range of INR 36,000-36,250/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 36,085/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 36,100/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,093/t, rounded to INR 36,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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