SteelMint’s daily sponge iron, CDRI, index was assessed at INR 32,000/tonne (t) (+ INR 50) exw Rourkela on 7 June, 2022.
About 4,050 t of transactions in CDRI were recorded by SteelMint today as against 1,000 t on 6 June.
The index rose following the rise in steel prices in Punjab in the first half of today’s trade. Buyers started to take positions and booked material.
Later in the day, however, inquiries were limited as the market witnessed price correction. However, spot trades increased on a day-on-day basis.
Market participants believe that domestic trades are most likely to remain subdued till the time prices stabilise.
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 31,900-32,500/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 31,984/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 32,000/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,992/t, rounded to INR 32,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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