SteelMint’s daily sponge iron, CDRI, index is assessed at INR 31,900/tonne (t) (=) exw Rourkela on 2 Jun’22.
About 5,920 t of transactions in CDRI were recorded by SteelMint today as against 4,250 t on 1 Jun.
The index stayed firm although demand remained limited during the first half. However, in the late trading hours demand improved, which led to a surge in offers, SteelMint notes.
Buyers started to take positions on the assumption that there is limited scope of a major fall in sponge prices. 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) – Fourteen trades in the range of INR 31,700-32,500/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 31,909/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 31,870/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 31,890/t, rounded to INR 31,900/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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