SteelMint’s daily sponge iron, CDRI, index is assessed at INR 39,900/tonne (t) (- INR 100) exw Rourkela on 19 Apr’22.
About 1,350 t of transactions in CDRI were recorded by SteelMint today against 6,520 t on 18 Apr.
The index fell slightly on limited trades. There was lack of confidence among market participants about price movements. Thus, spot trades remained on the lower side.
Taking this uncertain price movements into consideration the buyers are booking material as per requirement which resulted in drop in prices and trade volumes, 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) – Four trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 40,000/t, and two deals at INR 39,800/t. The average price of these four transactions was INR 39,926/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 39,850/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 39,888/t, rounded to INR 39,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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