SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,200/tonne (t) (- INR 1,200) exw Rourkela on 25 Apr’22.
Trade volumes stayed firm at 1,400 t today, stable as against 23 Apr.
The index fell as buyers remained inactive and quoted bids lower on account of the decline in offers due to poor offtake of semi-finished steel products.
Moreover, sponge iron and semi-finished steel prices fell on weak buying sentiments, steel production cuts on power outages, lack of price clarity on coal and weaker buying sentiments. Hence, the market cooled today.
Due to fears of an uncertain price correction spot trades continued to remain weak. Sources said that trades will regain momentum once prices find stability.
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) – Four trades in the range of INR 37,000-37,300/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 37,143/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these 17 was INR 37,243/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,193/t, rounded to INR 37,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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