SteelMint’s daily sponge iron, CDRI, index is assessed at INR 40,000/tonne (t) (+ INR 2,000) exw Rourkela on 18 Apr’22.
About 6,520 t of transactions in CDRI were recorded by SteelMint today as against 2,200 t on 16 Apr.
The index rose on active demand amidst higher offers floated by the suppliers. Producers kept prices strong as several deals took place today, sources informed SteelMint.
Billet prices remained strong across regions which kept sponge iron prices supported.
Moreover, a deal of 2,520 t was reported at INR 41,100/t exw loaded on to rake to Muzaffarnagar by an Odisha-based sponge iron manufacturer.
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) – Nine 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 40,000/t, and one deal each at INR 40,500/t, INR 40,200/t, INR 40,100, INR 39,800/t, and INR 39,400/t. The average price of these nine transactions was INR 40,076/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 39,925/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 40,001/t, rounded to INR 40,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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