SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,500/tonne (t) (- INR 400) exw Rourkela on 4 May’22.
About 2,900 t of transactions in CDRI were recorded by SteelMint today as against 1,170 t on 3 May.
The index fell as trade volumes continued to remain less than average in the spot market, resulting in a constant fall in offers today, SteelMint notes.
A significant price fall in billet prices resulted in dull demand for sponge iron. As per daily assessment, billet prices in Rourkela fell by INR 700/t today.
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) – Eight trades in the range of INR 36,500-37,000/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 36,469/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 36,511/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,490/t, rounded to INR 36,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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