SteelMint: Rourkela sponge iron index falls sharply on limited demand - 5 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 39,000/tonne (t) (- INR 1,000) exw Rourkela on 5 Apr'22.

About 1,400 t of transactions in CDRI were recorded by SteelMint today against 650 t on 4 Apr.

The index fell in the wake of persistent weakness in demand in the spot market following poor offtake of semi-finished steel products.

A fall in billets prices resulted in weak demand for sponge iron. As per daily assessment, Rourkela billet prices fell by INR 500/t today.

As a result, spot trades remained limited throughout the day leading to the fall in 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) - Three trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. All the three trades were recorded at INR 39,000/t. The average price of these three transactions was INR 39,000/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 39,046/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 39,023/t, rounded to INR 39,000/t exw.

Click for detailed methodology

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