SteelMint: Rourkela sponge iron index falls sharply on soft demand - 12 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 42,450/tonne (t) (- INR 900) exw Rourkela on 12 Mar'22.

About 500 t of transactions in CDRI were recorded by SteelMint today against 900 t on 11 Mar.

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

A sharp price fall in the billets market resulted in weak demand for sponge iron. As per daily assessment, Rourkela billet prices fell by INR 2,700/t today.

As a result, spot trades remained dull 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) - Two trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which one trade was recorded at INR 42,600/t, and one deal at INR 42,500/t. The average price of these two transactions was INR 42,560/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 42,364/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 42,462/t, rounded to INR 42,450/t exw.

Click for detailed methodology

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