SteelMint: Rourkela sponge iron index falls despite healthy trading volume - 15 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 34,500/tonne (t) (- INR 250) exw Rourkela on 15 Feb'22.

About 4,550 t of transactions in CDRI were recorded by SteelMint today against 5,520 t on 14 Feb.

Although the index slipped a little, trades remain active. Buyers are booking material as per needs and most of the manufacturers are waiting for the outcome of OMC's iron ore auction tomorrow, SteelMint learnt from sources.

Sources are expecting sponge iron prices to remain supported in view of higher raw material 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) - Eight 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 these, six trades were recorded at INR 34,500/t, and one deal each at INR 34,400/t, and INR 34,000/t. The average price of these eight transactions was INR 34,492/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these 15 was INR 34,500/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,496/t, rounded off to INR 34,500/t exw.

Click for detailed methodology

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