SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,900/tonne (t) (=) exw Rourkela on 21 Feb’22.
About 1,600 t of transactions in CDRI were recorded by SteelMint today against 1,750 t on 19 Feb.
The index remained stable on limited trades over the past couple of days. There was lack of confidence among market participants about price movements. Thus, spot trades continue to remain low.
Buyers are booking material as per requirements even as price volatility continues, SteelMint learnt from sources.
Moreover, raw materials (pellets, iron ore and coal) prices remained strong on optimistic trends.
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) – Six 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 three trades were recorded at INR 36,000/t, two deals at INR 35,800/t, and one deal at INR 35,750/t. The average price of these six transactions was INR 35,929/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 14 was INR 35,917/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,923/t, rounded off to INR 35,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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