SteelMint: Rourkela sponge iron index rebounds as trades improve - 1 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 40,200/tonne (t) (+ INR 450) exw Rourkela on 1 Apr'22.

About 3,000 t of transactions in CDRI were recorded by SteelMint today against 1,000 t on 31 Mar.

The index rose due to optimism in the market. Producers kept prices strong as several deals took place and ultimately prices rose today.

A bunch of deals were reportedly concluded for Mandi Gobindgarh, with freight charges at around INR 3,300-3,600/t, SteelMint learnt from sources.

Billet prices also remained strong across regions which kept sponge iron prices 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) - 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 40,500/t, and one deal each at INR 40,400/t, INR 40,300/t, INR 40,200/t, and INR 40,000/t. The average price of these six transactions was INR 40,250/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 40,113/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 40,181/t, rounded to INR 40,200/t exw.

Click for detailed methodology

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