SteelMint’s daily sponge iron, CDRI, index was assessed at INR 35,750/tonne (t) (+ INR 50) exw Rourkela on 9 August, 2022.
About 6,050 t of transactions in CDRI were recorded by SteelMint today against 2,900 t on 8 August.
A significant improvement in spot trade was seen today compared to yesterday. Purchase enquiries increased today amidst rising steel prices in the Punjab market during the second half of the trading session, which pushed producers to float offers at higher levels.
Trade dynamics
- Participants from Bihar were active and procured sizeable quantities of material, with freight rates at around INR 1,600-1,700/t.
- Also, buyers from Maharashtra booked premium grade (FeM 80-82%) sponge iron from Odisha at INR 36,900/t exw-Rourkela.
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 35,500-35,950/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 35,753/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 35,700/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,727/t, rounded to INR 35,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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