SteelMint’s daily sponge iron, CDRI, index is assessed at INR 40,000/tonne (t) (+ INR 1,000) exw Rourkela on 4 Mar’22.
About 920 t of transactions in CDRI were recorded by SteelMint today against 4,950 t on 3 Mar.
Even as the index rose trade volumes fell by over 80% due to cautious buying. Buyers kept silent and are booking material as per needs, SteelMint learnt from sources.
Low spot trading was reported today despite aggressive selling by a few manufacturers.
SteelMint learnt from sources that sponge iron prices are likely to remain elevated due to high 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) – Four trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. All the four trades were recorded at INR 40,000/t. The average price of these four transactions was INR 40,000/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 39,986/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 39,993/t, rounded to INR 40,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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