SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,000/tonne (t) (- INR 200) exw Rourkela on 26 Feb’22.
About 820 t of transactions in CDRI were recorded by SteelMint today against 2,520 t on 25 Feb.
The index fell on account of weak demand amidst uncertain price movements.
As a result, buyers opted to wait and watch rather than taking positions, which led to spot trading slowing down throughout the day, SteelMint learnt from sources.
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) – Three trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. All the three trades were recorded at INR 36,000/t. The average price of these three transactions was INR 36,000/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 36,013/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,006/t, rounded to INR 36,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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