SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,800/tonne (t) (+ INR 500) exw Rourkela on 29 Apr’22.
About 2,400 t of transactions in CDRI were recorded by SteelMint today as against 3,900 t on 28 April.
The index rallied on account of surging steel prices in Punjab, north India, due to power cuts. However, buying interest for sponge iron remained limited due to falling consumption on decline in production due to power outages in the central and northern regions., sources informed.
Out of the total trades reported today, 63% of the deals were reportedly concluded to Patna and Jharkhand, with freight charges around INR 1,300-1,500/t.
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 37,800-38,500/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 37,800/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 37,846/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,823/t, rounded to INR 37.800/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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