SteelMint: Rourkela sponge iron index rises by INR 200/t - 4 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 36,200/tonne (t) (+200) exw Rourkela on 4 Feb'22.

About 2,390 t of transactions in CDRI were recorded by SteelMint today against 1,500 t on 3 Feb.

The index rebounded on prevailing optimism in the market, with the rise in prices across regions today. Producers kept prices strong despite limited spot trades.

However, buyers in Rourkela are cautious amid a significant surge in offers has led to a fall in trade volumes.

Going forward, sponge iron prices are likely to remain strong on rising 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) - Eight 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 36,100/t, two deals at INR 36,000/t, and one deal each at INR 36,400/t, INR 36,300/t, INR 36,250/t, and INR 36,200/t. The average price of these eight transactions was INR 36,229/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 36,213/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,221/t, rounded to INR 36,200/t exw.

Click for detailed methodology

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