SteelMint’s daily sponge iron, CDRI, index was assessed at INR 32,100/tonne (t) (- INR 750) exw Rourkela on 25 May’22.
About 4,235 t of transactions in CDRI were recorded by SteelMint today against 1,900 t on 24 May.
Though the index reported a significant fall, trades improved as buyers resumed purchases leading to a rise in spot trading. Spot trades rose by a sharp 123% today which is relatively high from the past couple of days amidst unclear market trends.
Market participants were actively trading throughout the day and a good number of deals were reportedly concluded in the local market as well as for Jharkhand and Patna, with freight charges at around INR 1,500-1,700/t, sources informed SteelMint.
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) – Seven trades in the range of INR 32,000-32,500/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 32,057/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 33,000/t was also recorded at 11:00 am, but was excluded due to timing.
- 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 32,150/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,104/t, rounded to INR 32,100/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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