SteelMint’s daily sponge iron, CDRI, index was assessed at INR 35,600/tonne (t) (+ INR 1,150) exw-Rourkela on 8 July, 2022.
About 5,410 t of transactions in CDRI were recorded by SteelMint today against 4,100 t on 7 July.
The index continued to rally on account of active demand amidst higher offers floated through the suppliers. Prices rose following improved buying on account of surge in steel prices in the northern region, especially Punjab, SteelMint learned from sources.
Considering these factors, buyers started to take positions. This, in turn, led to gains in spot trade volumes. A hike in billet prices by INR 1,200/t d-o-d was also seen in today’s trading session.
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) – Twelve trades in the range of INR 35,000-35,750/t were recorded during the 11:30 am to 5:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 35,574/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 35,630/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,602/t, rounded to INR 35,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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