SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,400/tonne (t) (+ INR 1,400) exw Rourkela on 28 Feb’22.
About 3,900 t of transactions in CDRI were recorded by SteelMint today as against 820 t on 26 Feb.
The index rose as manufacturers are hiking sponge iron offers amid active demand and as producers are keeping prices higher.
Out of total deals, 56% were reported to Jharkhand and Raigarh. Billet prices remained strong across regions, which kept sponge iron prices supported.
With healthy trades happening across markets 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) – Five 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 two trades were recorded at INR 37,500/t, and one deal each at INR 38,000/t, INR 37,300/t, and INR 37,000/t. The average price of these five transactions was INR 37,438/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty two offers reported in the trading window and considered as T2 inputs. The average price of these twenty two was INR 37,342/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,390/t, rounded to INR 37,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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