SteelMint’s daily sponge iron, CDRI, index is assessed at INR 41,450/tonne (t) (+ INR 1,400) exw Rourkela on 16 Mar’22.
About 1,600 t of transactions in CDRI were recorded by SteelMint today as against 500 t on 15 Mar.
The index remained supported following active demand and firming up of offers by the manufacturers. The market saw healthy trading today. A bunch of deals were reportedly concluded for Jalna, with the freight charge at around INR 2,400-2,600/t, SteelMint learnt from sources.
Moreover, yesterday an export deal of 2,500 t was reported at INR 40,300-40,400/t ($530/t) exw loaded on to rake for Nepal, by an Odisha-based sponge iron manufacturer.
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 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 41,850/t, and one deal at INR 41,500/t. The average price of these three transactions was INR 41,609/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 16 was INR 41,247/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 41,428/t, rounded to INR 41,450/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
.jpg)
Leave a Reply