SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,000/tonne (t) (- INR 200) exw Rourkela on 26 Apr’22.
About 2,300 t of transactions in CDRI were recorded by SteelMint today against 1,400 t on 25 Apr.
Although the index fell further today enquiries improved due to rising prices in north India during the first half and spot trades rose over the past couple of days.
Out of the total number of deals as much as 74% were reported to Himachal Pradesh, with freight charges at around INR 3,300-3,500/t.
Market participants remained cautious about taking positions in a highly volatile market, SteelMint notes.
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) – Four trades in the range of INR 36,900-37,200/t were recorded from 11:30 am to 5:30 pm SteelMint trading window and considered as T1 inputs for final price calculation. The average of these transactions was INR 37,000/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers were reported in the trading window which were considered as T2 inputs. The average price of these fourteen offers was INR 37,035/t and was given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw-Rourkela was at INR 37,018/t, rounded to INR 37,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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