SteelMint’s daily sponge iron, CDRI, index is assessed at INR 38,400/tonne (t) (- INR 550) exw-Rourkela on 23 April 2022.
About 1,400 t of transactions in CDRI were recorded by SteelMint today against 1,100 t on 22 April.
The index continued to move downwards because of lower bids and limited buying interest seen throughout the day and, thus, sponge iron offers edged down. However, spot trades improved from yesterday as few buyers resumed purchases.
Participants are hoping that sponge prices might recover next week in view of firm raw material 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) – Five trades in the range of INR 38,500-38,700/t were recorded from 11:30 am to 3:30 pm SteelMint trading window and are considered as T1 inputs for final price calculation. The average of these transactions was INR 38,557/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nineteen offers were reported in the trading window and are considered as T2 inputs. The average price of these 19 was INR 38,247/t and was given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 38,402/t, rounded to INR 38,400/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply