SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,700/tonne (t) (+ INR 300) exw Rourkela on 1 Mar’22.
About 5,510 t of transactions in CDRI were recorded by SteelMint today against 3,900 t on 28 Feb.
The index rose due on prevailing optimistic sentiments in the market. Producers kept prices strong as major deals took place and ultimately prices rose today. Active trading took place throughout the day.
Sources are optimistic about prices of sponge iron in view of firm raw materials prices.
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) – Twelve 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 37,500/t, four deals at INR 38,000/t, and two deals at INR 37,800/t. The average price of these twelve transactions was INR 37,798/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 37,571/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,685/t, rounded to INR 37,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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