SteelMint: Limited trades weigh on Rourkela sponge iron index - 7 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 36,100/tonne (t) (- INR 150/t) exw Rourkela on 7 Feb'22.

About 1,700 t of transactions in CDRI were recorded by SteelMint today against 2,300 t on 5 Feb.

The index fell due to limited enquiries. Weak buying interest was also seen in the semi-finished steel market today, with spot buying remaining dull. A slight fall in bids resulted in offers dropping marginally today.

Meanwhile, the uptrend 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) - Five 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 two trades were recorded at INR 36,000/t, and one deal each at INR 36,200/t, INR 36,100/t, and INR 35,800/t. The average price of these five transactions was INR 36,093/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 36,129/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,111/t, rounded to INR 36,100/t exw.

Click for detailed methodology

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