SteelMint’s daily sponge iron, CDRI, index is assessed at INR 38,000/tonne (t) (- INR 450) exw Rourkela on 7 Apr’22.
About 1,970 t of transactions in CDRI were recorded by SteelMint today as against 1,450 t on 6 Apr.
The index fell and although trades improved slightly they remained less than average, resulting in the softening of offers.
There was lack of confidence among market participants as regards price movements. Thus, spot trades continued to remain somewhat limited. Buyers are booking material as per requirements even as price volatility continues.
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 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which four trades were recorded at INR 38,000/t, and one deal each at INR 38,300/t, and INR 37,900/t. The average price of these six transactions was INR 37,988/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 38,000/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,994/t, rounded to INR 38,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply