SteelMint’s daily sponge iron, CDRI, index is assessed at INR 34,550/tonne (t) (+50) exw Rourkela on 25 Jan’22.
About 3,170 t of transactions in CDRI were recorded by SteelMint today against 5,420 t on 24 Jan.
The index rose slightly due to optimism in the market. Producers kept prices strong as major deals took place and ultimately prices rose today.
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.
The current price of iron ore-based DRI (CDRI) for FeM 78% material in Durgapur is at INR 36,500/t DAP, while prices in Odisha’s Rourkela are at around INR 36,200-36,300/t for FeM 79-80% material.
Going forward, sponge iron prices are likely to remain strong on high raw materials prices as well as sufficient orders with suppliers.
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 four trades were recorded at INR 34,500/t, and three deals at INR 34,700/t. The average price of these seven transactions was INR 34,585/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) –Six offers were reported in this trading window and considered as T2 inputs. The average price of these six was INR 34,540/t and given 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,563/t, rounded to INR 34,550/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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