SteelMint: Active demand lifts Rourkela sponge iron index higher - 15 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 38,050/tonne (t) (+ INR 1,050) exw Rourkela on 15 Apr'22.

About 6,700 t of transactions in CDRI were recorded by SteelMint today as against 3,700 t on 14 April.

The index rose due to optimism in the market. Producers kept prices strong as several deals took place trigerring the rise in prices today, sources informed SteelMint.

In addition, strengthening coal prices has further firmed up sponge iron prices.

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) - Fifteen 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 38,500/t, three deals at INR 37,500/t, two deals each at INR 38,000/t, and INR 37,000/t, and one deal each at INR 38,400/t, INR 38,300/t, INR 38,200/t, INR 37,700/t, and INR 37,300/t. The average price of these fifteen transactions was INR 38,305/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 37,744/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 38,025/t, rounded to INR 38,050/t exw.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology