SteelMint’s daily sponge iron CDRI index is assessed at INR 32,850/tonne (t) (=) exw-Rourkela on 24 May 2022.
About 1,900 t of transactions in CDRI were recorded today against nil on 23 May.
The index remained stable on account of sluggish trends due to recently imposed export duties on several commodities by the Indian government.
Market participants are in a panic mode, and only need-based procurement took place today, SteelMint learnt from sources.
Spot trades are most likely to remain affected, as most of the major sellers are still inactive and waiting for prices to stabilise.
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 in the range of INR 32,750-33,000/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 32,847/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 32,897/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 32,872/t, rounded to INR 32,850/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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