SteelMint: Rourkela sponge iron index rises on active buying - 14 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 37,000/tonne (t) (+ INR 200) exw Rourkela on 14 Apr'22.

About 3,700 t of transactions in CDRI were recorded by SteelMint today as against 6,350 t on 13 April.

The index rose as manufacturers are hiking sponge iron offers amid active demand and as producers are keeping prices higher.

Out of total deals, 43% were reported to Mandi Gobindgarh with freight charges at around INR 3,800-4,000/t. Billet prices remained strong across regions, which kept sponge iron prices supported.

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 four trades were recorded at INR 37,000/t, and one deal each at INR 37,400/t, INR 37,250/t, INR 37,200/t, and INR 36,900/t. The average price of these eight transactions was INR 37,044/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 36,975/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 37,010/t, rounded to INR 37,000/t exw.

Click for detailed methodology

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