SteelMint’s daily sponge iron, CDRI, index is assessed at INR 38,450/tonne (t) (- INR 550) exw Rourkela on 6 Apr’22.
About 1,450 t of transactions in CDRI were recorded by SteelMint today against 1,400 t on 5 Apr.
The index moved down on weak enquiries following price correction in the semi-finished market. Spot trades continued to remain limited as buyers are booking material cautiously due to the persistent fall in prices, sources informed SteelMint.
A price correction in the billets market resulted in weak demand for sponge iron. As per daily assessment, Rourkela billet prices fell by INR 1,400/t today.
Domestic trades are likely to remain on the lower side amidst unforeseen changes, ongoing price volatility and a drop prices of iron ore and pellets, SteelMint notes.
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) – Three trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. All the three trades were recorded at INR 38,500/t. The average price of these three transactions was INR 38,500/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 38,425/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 38,463/t, rounded to INR 38,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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