SteelMint’s daily sponge iron, CDRI, index was assessed at INR 37,300/tonne (t) (+ INR 600) exw-Rourkela on 16 August, 2022.
About 3,700 t of transactions were recorded today against 1,620 t on 13 August.
The index rose on the back of strong buying interest. Spot trades increased compared to the previous trading day. Offers were also on the higher side supported by a rise in steel prices in Punjab, north India.
Trade dynamics
Participants from Bihar were active in the market and booked a decent quantity at freight rates hovering between INR 1,600-1,700/t.
A bunch of deals were also reported in the local market and northern region market as well.
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) – Three trades in the range of INR 37,000-37,500/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 37,405/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 37,167/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,286/t, rounded to INR 37,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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