SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,250/tonne (t) (+ INR 750) exw Rourkela on 16 Feb’22.
About 4,820 t of transactions in CDRI were recorded by SteelMint today against 4,550 t on 15 Feb.
The index rose on account of a surge in prices of raw materials (iron ore) in OMC’s latest auction. The market remained steady with active trading taking place today.
A bunch of deals were reportedly concluded for West Bengal and Jharkhand with freight charges at around INR 1,500-1,600/t, SteelMint learnt from sources.
With major deals happening in different states, ultimately trades and prices picked up today. Sources are expecting sponge iron prices to remain strong on rising raw material prices.
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) – Eight 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 four trades were recorded at INR 35,300/t, three deals at INR 35,000/t, and one deal at INR 35,800/t. The average price of these eight transactions was INR 35,194/t and 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 35,259/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,226/t, rounded to INR 35,250/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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