SteelMint’s daily sponge iron, CDRI, index was assessed at INR 31,900/tonne (t) (+ INR 400) exw Rourkela on 13 June, 2022.
About 4,450 t of transactions in CDRI were recorded by SteelMint today against 1,000 t on 11 June.
The index rebounded as trade volumes improved significantly compared to Saturday. A rise in steel prices, especially in Punjab, led sponge manufacturers to float higher offers.
Price volatility still remains a major concern among market participants because of which buyers are a bit cautious and booking material as per their requirement only, SteelMint learnt 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) – Ten trades in the range of INR 31,500-32,000/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 31,907/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 31,923/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,915/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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