SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,100/tonne (t) (=) exw Rourkela on 8 Feb’22.
About 5,550 t of transactions in CDRI were recorded by SteelMint today against 1,700 t on 7 Feb.
The index remained stable as trades improved compared to yesterday. Buyers are booking the material as per their needs even as price volatility persists, SteelMint learnt from sources.
Moreover, raw materials (pellets, iron ore and coal) prices remained strong amidst optimistic trends.
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 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 five trades were recorded at INR 36,000/t, two deals each at INR 36,500/t, and INR 36,200/t, and one deal at INR 36,100/t. The average price of these ten transactions was INR 36,099/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 36,078/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,088/t, rounded 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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