SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,650/tonne (t) (+ INR 650) exw Rourkela on 1 August, 2022.
About 7,400 t of transactions in CDRI were recorded by SteelMint today against 2,600 t on 30 July.
The index rebounded following active demand and firming up of offers by manufacturers.
With major deals happening in different states, ultimately trades and prices picked up today. Billet prices remained strong across regions, which kept sponge iron prices supported, SteelMint learned from sources.
Trade dynamics
- Participants from Maharashtra market actively booked material today.
- Patna based buyers booked material as per requirement only.
- A bunch of deals were also reported towards Northen region, as well as in the local 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) – Sixteen trades in the range of INR 36,000-37,500/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 36,672/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 36,588/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
Leave a Reply