SteelMint’s daily sponge iron, CDRI, index is assessed at INR 31,750/tonne (t) (- INR 350) exw-Rourkela on 26 May 2022.
About 1,755 t of transactions in CDRI were recorded today against 4,235 t on 25 May.
The index fell further on account of lower bids. Market participants booked a decent quantity yesterday and hence did not bid today.
In addition, a significant decline in steel prices in Punjab turned market sentiments sluggish, resulting in limited enquiries and a fall in offers 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) – Six trades in the range of INR 31,700-32,000/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 31,763/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 31,750/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,757/t, rounded to INR 31,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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