SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,300/tonne (t) (- INR 500) exw Rourkela on 30 Apr’22.
About 500 t of transactions in CDRI were recorded by SteelMint today against 2,400 t on 29 Apr.
The index fell as buyers remained inactive throughout the day. There was a decline in offers by suppliers 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, and lack of price clarity. Hence, the market cooled today.
Due to fears of an uncertain price correction spot trades remained weak.
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) – Two trades at INR 37,300/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 37,300/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 37,313/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,306/t, rounded to INR 37,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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