SteelMint: Rourkela sponge iron index rises as offers remain firm - 5 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 36,250/tonne (t) (+50) exw Rourkela on 5 Feb'22.

About 2,300 t of transactions in CDRI were recorded by SteelMint today against 2,390 t on 4 Feb.

The index remained strong although trades remained limited today. Sponge iron producers kept prices firm amidst coal supply shortage. Buyers are avoiding bulk buying due to unclear market trends, SteelMint learnt from sources.

Sources are expecting sponge iron prices to remain firm on higher raw material 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) - 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 three trades were recorded at INR 36,200/t, two deals at INR 36,300/t and one deal at INR 36,500/t. The average price of these six transactions was INR 36,212/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Eight offers were reported in this trading window and considered as T2 inputs. The average price of these eight was INR 36,260/t and given 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,236/t, rounded off to INR 36,250/t exw.

Click for detailed methodology

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