SteelMint: Rourkela sponge iron index rises further on active demand - 20 Jan

SteelMint's daily sponge iron, CDRI, index is assessed at INR 34,350/tonne (t) (+250) exw Rourkela on 20 Jan'22.

About 3,600 t of transactions in CDRI were recorded by SteelMint today against 3,150 t on 19 Jan.

The index remained supported following active demand and firming up of offers by manufacturers.

The market saw active trading throughout the day. A bunch of deals were reportedly concluded for Patna, with freight charges at around INR 1,600/t, SteelMint learnt from sources.

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) - Five 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 these two trades were recorded at INR 34,200/t, and one deal each at INR 34,500/t, INR 34,400/t, and INR 34,000/t. The average price of these five transactions was INR 34,233/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these 13 was INR 34,446/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,340/t, rounded to INR 34,350/t exw.

Click for detailed methodology

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