SteelMint: Limited trades weigh on Rourkela sponge iron index - 28 Jan

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,400/tonne (t) (-INR 50) exw Rourkela on 28 Jan'22.

About 1,600 t of transactions in CDRI were recorded by SteelMint today against 4,620 t on 27 Jan.

The index fell slightly due to limited enquiries. However, producers have sufficient orders in hand as buyers have booked the material as per their need. Thus, with slight fall in bids, offers dropped marginally on the day.

Meanwhile, the rising trend in coal prices is likely to continue, providing support to 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) - Seven 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 35,500/t, and two deals each at INR 35,400/t, and INR 35,300/t. The average price of these seven transactions was INR 35,394/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 35,410/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,402/t, rounded to INR 35,400/t exw.

Click for detailed methodology

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