SteelMint’s daily sponge iron, CDRI, index is assessed at INR 38,050/tonne (t) (+350) exw Rourkela on 2 Mar’22.
About 3,490 t of transactions in CDRI were recorded by SteelMint today against 5,510 t on 1 Mar.
The index rose as manufacturers hiked domestic sponge iron offers and given active demand producers are keeping prices higher.
Sources are expecting sponge iron prices to remain strong as major deals are happening in different states following the rise in coal prices globally.
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) – Seven 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 six trades were recorded at INR 38,000/t and one deal at INR 38,200/t. The average price of these seven transactions was INR 38,057/t and given a 50% weightage in the final price calculation.
Other Price Indicators – bids/offers/indicative (T2) – Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 38,025/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 38,041/t, rounded to INR 38,050/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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