SteelMint: Rourkela sponge iron index rises despite cautious buying - 17 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,900/tonne (t) (+ INR 650) exw Rourkela on 17 Feb'22.

About 1,450 t of transactions in CDRI were recorded by SteelMint today against 4,820 t on 16 Feb.

The index rose slightly but trade volumes fell over 70% on cautious buying. Buyers remained quiet on account of unclear market trends, SteelMint learnt from sources.

Low spot trading was reported today despite aggressive selling by a few manufacturers.

Sources are optimistic about prices of sponge iron in view of raw material prices which are continuously rising in the central and eastern regions of the country.

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) - Four 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 35,800/t, and one deal each at INR 36,200/t, and INR 36,000/t. The average price of these four transactions was INR 35,883/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 35,950/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,917/t, rounded to INR 35,900/t exw.

Click for detailed methodology

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