SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,000/tonne (t) (- INR 50) exw Rourkela on 12 Feb’22.
About 610 t of transactions in CDRI were recorded by SteelMint today against 2,250 t on 11 Feb.
The index fell on account of poor buying interest in the spot market along with bids declining by around INR 300-500/t compared to floated offers.
Market participants informed that they were waiting for clearer market directions to emerge before taking positions.
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 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 four trades were recorded at INR 35,000/t. The average price of these four transactions was INR 35,000/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 14 was INR 34,991/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,995/t, rounded off to INR 35,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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