SteelMint: Rourkela sponge iron index falls despite improved trade volumes - 19 Jan

SteelMint's daily iron ore-based DRI (CDRI) index is assessed at INR 34,100/tonne (t) (-INR 100/t) exw Rourkela on 19 Jan'22.

About 3,150 t of transactions in CDRI were recorded by SteelMint today against 2,550 t on 18 Jan.

Although the index slide marginally, trades improved compared to yesterday. Buyers are booking material as per their needs even as price volatility persists for the last few days, SteelMint learnt from sources.

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 34,000/t, two deals each at INR 34,400/t, and INR 34,200/t. The average price of these seven transactions was INR 34,113/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 34,110/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,111/t, rounded to INR 34,100/t exw.

Click for detailed methodology

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