SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,500/tonne (t) (=) exw Rourkela on 7 May’22.
About 1,900 t of transactions in CDRI were recorded by SteelMint today against 4,600 t on 6 May.
The index remained stable on limited trades. There was lack of confidence among market participants about price movements. Thus, spot trades were reported lower compared on a day-on-day basis.
Buyers are booking material as per requirements amidst price volatility, SteelMint learnt from sources.
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 36,400-37,000/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 36,484/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eight offers reported in the trading window and considered as T2 inputs. The average price of these eight was INR 36,520/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,502/t, rounded to INR 36,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply