SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,000/tonne (t) (+ INR 100) exw Rourkela on 22 Feb’22.
About 500 t of transactions in CDRI were recorded by SteelMint today as against 1,600 t on 21 Feb.
The index rose as producers are keeping offers high citing high coal prices, with bids climbing in a recent MCL auction. Thus, sponge iron offers are strong even though spot trades remain weak amidst falling enquiries, 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) – One trade was recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. One deal was recorded at INR 36,200/t. The average price of this one transactions was INR 36,200/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty two offers reported in the trading window and considered as T2 inputs. The average price of these twenty two was INR 35,850/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,025/t, rounded to INR 36,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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