SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,900/tonne (t) (- INR 300) exw Rourkela on 10 May’22.
About 2,300 t of transactions in CDRI were recorded by SteelMint today against 2,000 t on 9 May.
The index fell as buyers remained inactive and quoted bids lower on account of the decline in offers due to poor offtake of semi-finished steel products.
Lack of confidence and price clarity led to weaker buying sentiments. Hence, the market cooled down today.
Due to fears of an uncertain price correction spot trades continued to remain limited. Sources said that trades will regain momentum once prices find stability.
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) – Five trades in the range of INR 35,800-36,300/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 35,880/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 35,927/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,904/t, rounded to INR 35,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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