SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,450/tonne (t) (+900) exw Rourkela on 27 Jan’22.
About 4,620 t of transactions in CDRI were recorded by SteelMint today against 3,170 t on 25 Jan.
The index rose as rising raw material prices are strengthening domestic sponge iron offers and given active demand, producers are keeping prices higher.
Industry remain optimistic about price movements in view of sufficient orders with suppliers along with higher input costs, SteelMint notes.
Billet prices also remained strong across regions on account of rising coal prices, which kept sponge prices supported.
With major deals happening in different states, sources are expecting sponge iron prices to remain strong.
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 were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which three trades were recorded at INR 35,500/t, and one deal each at INR 35,700/t, INR 35,400/t, INR 35,300/t, INR 35,250/t, INR 35,200/t, and INR 35,000/t. The average price of these nine transactions was INR 35,416/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 35,444/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,430/t, rounded to INR 35,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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