SteelMint: Rourkela sponge iron index falls on limited enquiries - 10 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,200/tonne (t) (-400) exw Rourkela on 10 Feb'22.

About 2,150 t of transactions in CDRI were recorded by SteelMint today against 1,600 t on 9 Feb.

The index fell further on account of weak demand amidst uncertain price movements in major locations of the country.

As a result, buyers opted to wait and watch rather than taking positions, which led to spot trading slowing down over the past couple of days, SteelMint learned 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) - Six 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 35,500/t, two deals at INR 35,200/t, and one deal each at INR 35,300/t, and INR 35,000/t. The average price of these six transactions was INR 35,236/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these 16 was INR 35,211/t and given 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,224/t, rounded off to INR 35,200/t exw.

Click for detailed methodology

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