SteelMint: Rourkela sponge iron index rises slightly despite cautious buying - 8 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 42,400/tonne (t) (+ INR 100) exw Rourkela on 8 Mar'22.

About 970 t of transactions in CDRI were recorded by SteelMint today against 2,750 t on 7 March.

The index rose slightly but trade volumes fell by over 65% 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 remaining strong 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 42,500/t, and one deal each at INR 42,150/t, and INR 42,000/t. The average price of these four transactions was INR 42,294/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty two offers reported in the trading window and considered as T2 inputs. The average price of these twenty two was INR 42,470/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 42,382/t, rounded to INR 42,400/t exw.

Click for detailed methodology

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