SteelMint’s daily sponge iron, CDRI, index is assessed at INR 31,500/tonne (t) (- INR 50) exw Rourkela on 11 June 2022.
About 1,000 t of transactions in CDRI were recorded by SteelMint today as against 2,320 t on 10 June.
Although the index fell slightly, bids as well as offers remained firm following the strengthening in prices in north India. However, due to average demand for billets and finished steel from the neighbouring regions, the buying interest for sponge iron remains needs-based, sources informed SteelMint.
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 31,400-31,500/t were recorded during the 11:30 am to 1:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 31,480/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 31,557/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,519/t, rounded to INR 31,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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