SteelMint’s daily sponge iron, CDRI, index was assessed at INR 34,600/tonne (t) (- INR 100) exw-Rourkela on 7 September, 2022.
About 5,500 t of transactions were recorded today as against 1,600 t on 6 September.
Even though the index fell, spot trades rose compared to yesterday. Several deals were concluded amid rising steel prices in the Punjab market coupled with an increase in purchase enquiries.
However, market participants are somewhat confused about the price swings because there prevails a general sense of uncertainty whether current prices will sustain.
Trade dynamics
- Patna and Jalna buyers actively participated in deals today and a sizable volume of material was booked by them.
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) – Nine trades in the range of INR 34,500-34,800/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 34,600/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 34,550/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,575/t, rounded to INR 34,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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