SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,300/tonne (t) (+ INR 300) exw-Rourkela on 20 May.
About 5,230 t of transactions in CDRI were recorded by SteelMint today against 3,550 t on 19 May.
The index rose on the back of active demand and higher offers floated by suppliers. Producers kept prices upside as several deals took place today following the rise in Rourkela billets prices by INR 300-500/t, d-o-d.
Looking at this positive turn, buyers have started taking positions which led to the rise in trade volumes.
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) – Fourteen trades in the range of INR 35,100-35,500/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 35,334/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 35,250/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,292/t, rounded to INR 35,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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