SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,200/tonne (t) (- INR 300) exw Rourkela on 9 May’22.
About 2,000 t of transactions in CDRI were recorded by SteelMint today as against 1,900 t on 7 May.
The index fell on account of limited trades and only requirement-based bookings took place today. Spot buying interest was reportedly limited. The major sellers remained inactive today amidst the ongoing MCL coal auction.
Buying interest in the semi-finished steel market also remained dull today, sources informed SteelMint. Hence, prices witnessed a downward correction.
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) – Six trades in the range of INR 36,050-36,500/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 36,260/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 36,189/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,224/t, rounded to INR 36,200/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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