SteelMint: Rourkela sponge iron index falls slightly despite improved trades - 23 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,950/tonne (t) (- INR 50) exw Rourkela on 23 Feb'22.

About 2,600 t of transactions in CDRI were recorded by SteelMint today against 500 t on 22 Feb.

Although the index fell, trades improved as a few buyers resumed purchases, resulting in a rise in spot trades compared to yesterday. Several deals were reported to Durgapur and Jharkhand, SteelMint learnt from sources.

Sources are expecting sponge iron prices to remain strong on account of firm raw material prices and rising billet 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) - Five 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 36,000/t, and one deal each at INR 36,200/t, INR 35,900/t, and INR 35,800/t. The average price of these five transactions was INR 35,967/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 35,942/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,954/t, rounded to INR 35,950/t exw.

Click for detailed methodology

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