SteelMint’s daily sponge iron, CDRI, index is assessed at INR 42,450/tonne (t) (+ INR 1,100) exw Rourkela on 21 Mar’22.
About 2,810 t of transactions in sponge iron, CDRI, were recorded by SteelMint today as against 640 t on 17 March.
The index rose with producers quoting prices higher. A sharp rise in billets prices resulted in healthy demand for sponge iron. As per assessment, Rourkela billet prices rose by INR 2,300/t d-o-d.
As a result, spot trades remained active throughout the day leading to the rise in 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) – Seven 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 three trades were recorded at INR 42,500/t, and one deal each at INR 43,000/t, INR 42,400/t, INR 42,350/t and INR 42,000/t. The average price of these seven transactions was INR 42,480/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 42,400/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 42,440/t, rounded to INR 42,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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