SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,700/tonne (t) (-INR 200) exw Rourkela on 18 Feb’22.
About 1,130 t of transactions in CDRI were recorded by SteelMint today against 1,450 t on 17 Feb.
The index moved down on persistent weak domestic demand. Limited buying interest was seen in the market throughout the day, sources informed SteelMint.
However, raw material prices (pellets, iron ore and coal) remained strong amidst optimistic trends and active demand globally.
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) – Five 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 two trades were recorded at INR 35,600/t, two deals at INR 35,500/t, and one deal at INR 36,000/t. The average price of these five transactions was INR 35,600/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 35,808/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,704/t, rounded to INR 35,700/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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