SteelMint: Rourkela sponge iron index rebounds tracking billets market - 28 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 37,300/tonne (t) (+ INR 750) exw-Rourkela on 28 Apr'22.

About 3,900 t of transactions in CDRI were recorded by SteelMint today against 1,850 t on 27 April.

The index rose on the back of active demand amidst higher offers floated by the suppliers. Producers kept prices strong as several deals took place today following hike in billet offers by INR 1,000/t, d-o-d.

Going forward, the price movement of sponge iron will depend more on billets and coal prices as the availability of sponge is sufficient in the spot market, sources informed SteelMint.

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) - Nine trades in the range of INR 37,000-37,750/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 37,261/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 37,340/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 37,301/t, rounded to INR 37,300/t exw.

Click for detailed methodology

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