SteelMint’s daily sponge iron, CDRI, index is assessed at INR 34,750/tonne (t) (- INR 250) exw Rourkela on 14 Feb’22.
About 5,520 t of transactions in CDRI were recorded by SteelMint today against 610 t on 12 Feb.
Although the index fell, trades improved as a few buyers resumed purchases, resulting in a rise in spot trades compared to Saturday. Out of the total deals, about 36% was sold to Maharashtra, SteelMint learnt from sources.
However, there was lack of confidence among market participants about prices.
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) – Nine trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 35,200/t, two deals each at INR 34,800/t, and INR 34,600/t, and one deal each at INR 34,900/t, INR 34,500/t, and INR 34,300/t. The average price of these nine transactions was INR 34,758/t and 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 34,740/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,749/t, rounded to INR 34,750/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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