SteelMint’s daily sponge iron, CDRI, index is assessed at INR 42,300/tonne (t) (+ INR 1,050) exw Rourkela on 7 Mar’22.
About 2,750 t of transactions in CDRI were recorded by SteelMint today against 2,600 t on 5 Mar.
The index continued to rally on account of active demand amidst higher offers floated through the suppliers and surging raw material prices, especially coal.
A number of deals were reportedly concluded for West Bengal, with the freight charge at around INR 1,500-1,600/t, SteelMint learnt from sources.
Moreover, a deal of 2,500 t was reported at INR 42,600/t ($552/t) exw loaded on to rake to Assam (Guwahati) 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) – 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 three trades were recorded at INR 42,500/t, and one deal each at INR 43,300/t, INR 43,200/t, INR 42,400/t, and INR 42,000/t. The average price of these seven transactions was INR 42,286/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 42,327/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 42,306/t, rounded to INR 42,300/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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