SteelMint: Rourkela sponge iron index slips INR 200/t on weak demand - 21 Jan

SteelMint's daily sponge iron, CDRI, index is assessed at INR 34,150/tonne (t) (-200) exw Rourkela on 21 Jan'22.

About 1,500 t of transactions in CDRI were recorded by SteelMint today against 4,300 t on 20 Jan.

The index moved down on persistent weak demand. Limited buying interest was also seen in the semi-finished steel market today. Thus, spot buying interest remained dull today, sources informed SteelMint.

However, in terms of raw materials, prices remained strong for pellets, iron ore and coal on account of optimistic trends and active demand globally.

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) - Three 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 one trade was recorded at INR 34,300/t, and one deal each at INR 34,200/t, and INR 34,000/t. The average price of these three transactions was INR 34,213/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these Nineteen was INR 34,130/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,172/t, rounded to INR 34,150/t exw.

Click for detailed methodology

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