SteelMint: Rourkela sponge iron index rises sharply on improved bids - 5 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 41,250/tonne (t) (+ INR 1,250) exw Rourkela on 5 Mar'22.

About 2,600 t of transactions in CDRI were recorded by SteelMint today against 920 t on 4 Mar.

The index rose on optimistic trends following higher coal and scrap prices globally. Producers kept prices strong as several deals took place and ultimately prices rose today.

A number of deals were reportedly concluded for West Bengal, with the freight charge at around INR 1,500-1,600/t, SteelMint learnt from sources.

Going forward, sponge iron prices are likely to remain strong on high raw materials prices as well as sufficient orders with suppliers.

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 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 41,200/t, and one deal each at INR 42,000/t, and INR 41,000/t. The average price of these four transactions was INR 41,338/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 41,121/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 41,230/t, rounded to INR 41,250/t exw.

Click for detailed methodology

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