SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,950/tonne (t) (+150) exw Rourkela on 1 Feb’22.
About 4,900 t of transactions in CDRI were recorded by SteelMint today against 700 t on 31 Jan.
The index remained supported on the back of active demand and rise in offers by manufacturers.
The market saw active trading throughout the day. A bunch of deals were reported across regions, with freight charges at around INR 1,600/t for Patna and INR 2,500-2,600/t for Indore, SteelMint learnt from sources.
Moreover, an export deal of 2,500 t CDRI mix material (80 FeM) was reported at INR 37,400/t ($500/t) exw loaded on to rake, equivalent to $525/t CPT Nepal, by an Odisha-based sponge iron manufacturer.
Sources are optimistic that prices of sponge iron may continue to rise further in view of consistently rising raw material prices in the central and eastern regions of the country.
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) – Eleven 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 four trades were recorded at INR 35,900/t, three deals each at INR 36,000/t, and INR 35,800/t, and one deal at INR 35,700/t. The average price of these eleven transactions was INR 35,913/t and given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 35,947/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 35,930/t, rounded to INR 35,950/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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