SteelMint’s daily sponge iron, CDRI, index was assessed at INR 36,100/tonne (t) (+ INR 250) exw Rourkela on 29 July, 2022.
About 2,900 t of transactions in CDRI were recorded by SteelMint today as against 4,300 t on 28 July.
The index rose as manufacturers hiked domestic sponge iron offers. However, spot trade volumes remained relatively low on a daily basis as participants have sufficient orders in hand and are resisting higher offers floated by the suppliers, SteelMint learned from sources.
Trade dynamics
- Market participants in Patna resisted high prices and hence booked material as per requirement only.
- Buyers in the Maharashtra market decided to wait and watch for clearer direction in terms of prices.
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 35,800-36,200/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 36,059/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 36,093/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,076/t, rounded to INR 36,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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