SteelMint: Rourkela sponge iron index falls despite improved trades - 12 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,950/tonne (t) (- INR 400) exw Rourkela on 12 Apr'22.

About 6,920 t of transactions in CDRI were recorded by SteelMint today as against 900 t on 11 April.

Although the index fell, trades improved as buyers resumed purchases, resulting in a rise in spot trades. Out of total deals, about 32% was sold to Maharashtra (Nagpur), with the freight charge at around INR 1,700-1,800/t, SteelMint learnt from sources.

A good number of deals were reportedly concluded for Mandi Gobingarh and Patna, with freight charges at around INR 3,500-3,800/t for Mandi and INR 1,700/t for Patna.

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) - Fourteen 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 four trades were recorded at INR 36,000/t, four deals at INR 35,800/t, two deals at INR 36,500/t, and one deal each at INR 36,400/t, INR 36,200/t, INR 35,900/t, and INR 35,500/t. The average price of these fourteen transactions was INR 35,961/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 35,967/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,964/t, rounded to INR 35,950/t exw.

Click for detailed methodology

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