SteelMint: Rourkela sponge iron index rises marginally on active trading - 24 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 36,100/tonne (t) (+ INR 150) exw Rourkela on 24 Feb'22.

About 2,700 t of transactions in CDRI were recorded by SteelMint today against 2,600 t on 23 Feb.

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

However, buyers in Rourkela are cautious amid a significant surge in offers and prefer to wait for clearer market direction, SteelMint learnt from sources.

Going forward, sponge iron prices are likely to remain supported on higher raw material prices, especially coal prices, which rose further today.

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 three trades were recorded at INR 36,200/t, three deals at INR 36,000/t, and one deal each at INR 36,300/t, and INR 36,100/t. The average price of these eight transactions was INR 36,117/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 36,046/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,082/t, rounded to INR 36,100/t exw.

Click for detailed methodology

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