SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,900/tonne (t) (+ INR 200) exw Rourkela on 19 Feb’22.
About 1,750 t of transactions in CDRI were recorded by SteelMint today against 1,130 t on 18 Feb.
The index rose due to optimism in the market. Producers kept prices strong as several deals took place and ultimately prices rose today, sources informed SteelMint.
Going forward, sponge iron prices are expected to remain supported on high raw material prices as well as sufficient orders with suppliers, following high costs of substitute products.
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) – Six trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which four trades were recorded at INR 36,000/t, and one deal each at INR 36,200/t, and INR 35,700/t. The average price of these six transactions was INR 36,000/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) –Twelve offers reported in the trading window and considered as T2 inputs. The average price of these 12 was INR 35,844/t and given 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,922/t, rounded off to INR 35,900/t exw.
Click for detailed methodology
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