SteelMint’s daily sponge iron, CDRI, index is assessed at INR 41,600/tonne (t) (- INR 850) exw Rourkela on 14 Mar’22.
About 400 t of transactions in CDRI were recorded by SteelMint today as against 500 t on 12 Mar.
The index moved down on persistent weak demand. Limited buying interest was seen in the semi-finished steel market today. Thus, spot buying interest remained dull, sources informed SteelMint.
However, it is also learned that most of the mill owners continue to hold sales, clearing old bookings and are waiting for OMC’s upcoming iron ore auction, which is expected to receive a good response.
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) – One trades were recorded in the 12:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The trade was recorded at INR 41,500/t, and given a 50% weightage in the final price calculation.
Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 41,708/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 41,604/t, rounded to INR 41,600/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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