SteelMint: Rourkela sponge iron index inches up despite limited trade - 25 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 36,200/tonne (t) (+INR 100) exw Rourkela on 25 Feb'22.

About 2,020 t of transactions in CDRI were recorded by SteelMint today against 2,700 t on 24 February.

Higher coal prices and strengthening billets prices were the major factors behind the slight uptick in sponge iron prices.

However, trade remained limited as buyers were avoiding bulk bookings, SteelMint learnt from sources.

Considering the high costs of raw materials, sources are expecting sponge iron prices to remain supported.

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) - Seven 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 36,200/t, two deals at INR 36,300/t, and one deal at INR 36,000/t. The average price of these seven transactions was INR 36,242/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 36,160/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,201/t, rounded to INR 36,200/t exw.

Click for detailed methodology

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