SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,100/tonne (t) (+150) exw Rourkela on 2 Feb’22.
About 4,200 t of transactions in CDRI were recorded by SteelMint today against 4,900 t on 1 Feb.
The index rose further on active demand and higher offers floated by the suppliers due to firm raw materials prices.
A number of deals were reportedly concluded for West Bengal and Bihar with freight charges at around INR 1,500-1,600/t, SteelMint learnt from sources.
The current price of iron ore-based DRI (CDRI) for FeM 78% material in Durgapur is at INR 37,800/t DAP, while Rourkela-based sellers have concluded a few deals at around INR 37,600/t DAP Durgapur for FeM 79-80% material.
Sources are expecting sponge iron prices to remain strong on higher raw materials prices.
Rationale –
The 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) – Eleven 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 six were recorded at INR 36,000/t, four deals at INR 36,200/t and one deal at INR 36,300/t. The average price of these 11 transactions was INR 36,100/t and given 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) –Nine offers were reported in this trading window and considered as T2 inputs. The average price of these nine was INR 36,078/t and given 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,089/t, rounded off 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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