SteelMint’s daily sponge iron, CDRI, index is assessed at INR 36,500/tonne (t) (+ INR 50) exw Rourkela on 6 May’22.
About 4,600 t of transactions in CDRI were recorded by SteelMint today as against 2,200 t on 5 May.
Prices rose following improved buying on account of surge in steel prices in the northern region, especially Punjab. Considering these factors, buyers started to take positions. This, in turn, led to gains in spot trade volumes.
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 in the range of INR 36,200-36,600/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 36,446/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 36,525/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 36,486/t, rounded to INR 36,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
Leave a Reply