SteelMint: Rourkela sponge iron index stable on limited enquiries - 18 Jan

SteelMint's daily iron ore-based DRI (CDRI) index is assessed at INR 34,200/tonne (t) (=) exw Rourkela on 18 Jan'22.

About 2,550 t of transactions in CDRI were recorded by SteelMint today against 3,700 t on 17 Jan.

The index remained stable amid limited enquiries. Less active spot trading was reported today despite aggressive selling by a few manufacturers.

Buyers remained mostly quiet on account of unclear market trends as well as fall in billet prices, holding their bids on prevailing offers, SteelMint notes.

However, a export deal of 2,520 t was reported at INR 36,000-36,200/t ($485/t) exw loaded on to rake, equivalent to $510/t CPT Nepal, by an Odisha-based sponge iron manufacturer.

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) - Seven 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 three trades were recorded at INR 34,200/t, two deals at INR 34,400/t, and one deal each at INR 34,700/t and INR 34,000/t. The average price of these seven transactions was INR 34,200/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these 11 was INR 34,193/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge C-DRI exw Rourkela was at INR 34,196/t, rounded to INR 34,200/t exw.

Click for detailed methodology

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