SteelMint’s daily sponge iron, CDRI, index is assessed at INR 42,400/tonne (t) (+ INR 100) exw Rourkela on 8 Mar’22.
About 970 t of transactions in CDRI were recorded by SteelMint today against 2,750 t on 7 March.
The index rose slightly but trade volumes fell by over 65% on cautious buying. Buyers remained quiet on account of unclear market trends, SteelMint learnt from sources. Low spot trading was reported today despite aggressive selling by a few manufacturers.
Sources are optimistic about prices of sponge iron in view of raw material prices which are remaining strong in the central and eastern regions of the country.
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) – Four 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 42,500/t, and one deal each at INR 42,150/t, and INR 42,000/t. The average price of these four transactions was INR 42,294/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 42,470/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 42,382/t, rounded to INR 42,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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