SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,000/tonne (t) (+ INR 350) exw Rourkela on 27 July, 2022.
About 5,150 t of transactions in CDRI were recorded by SteelMint today against 1,380 t on 26 July.
The index rose further on firm buying interest. Spot trades eventually increased compared on a d-o-d basis.
In addition, a significant rise steel prices in Punjab, north India, influenced suppliers to keep offers higher.
Trade dynamics
- Participants from Bihar were highly active and procured material in a decent quantity, with freight rates around INR 1,600-1,700/t.
- Buyers from Maharashtra received offers at around INR 37,500-38,000/t exw-Rourkela, for FeM 82 material.
- A bunch of deals were also reported in the local market and towards Raigarh 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) – Eleven trades in the range of INR 35,800-36,000/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 35,993/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 36,014/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,004/t, rounded to INR 36,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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