SteelMint: Rourkela sponge iron index slips on low demand - 3 Feb

SteelMint's daily sponge iron, CDRI, index is assessed at INR 36,000/tonne (t) (-100) exw Rourkela on 3 Feb'22.

About 1,500 t of transactions in CDRI were recorded by SteelMint today against 4,200 t on 2 Feb.

The index slipped on persistent weak demand, limited buying interest in the semi-finished steel market today, with spot buying interest remaining dull today.

A majority of market participants held their offers and bids due to unclear market trends, although industry participants are expecting prices to stay firm due to higher costs from the raw material front.

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) - Five 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 36,300/t, and one deal each at INR 36,200/t, INR 36,000/t, INR 35,900/t, and INR 35,800/t. The average price of these five transactions was INR 36,060/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 35,906/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,983/t, rounded to INR 36,000/t exw.

Click for detailed methodology

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