SteelMint’s daily sponge iron, CDRI, index is assessed at INR 37,000/tonne (t) (+ INR 200) exw Rourkela on 14 Apr’22.
About 3,700 t of transactions in CDRI were recorded by SteelMint today as against 6,350 t on 13 April.
The index rose as manufacturers are hiking sponge iron offers amid active demand and as producers are keeping prices higher.
Out of total deals, 43% were reported to Mandi Gobindgarh with freight charges at around INR 3,800-4,000/t. Billet prices remained strong across regions, which kept sponge iron prices supported.
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) – Eight 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 four trades were recorded at INR 37,000/t, and one deal each at INR 37,400/t, INR 37,250/t, INR 37,200/t, and INR 36,900/t. The average price of these eight transactions was INR 37,044/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 36,975/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 37,010/t, rounded to INR 37,000/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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