SteelMint: Rourkela sponge iron index up INR 400/t on improved trades - 24 Jan

SteelMint's daily sponge iron, CDRI, index is assessed at INR 34,500/tonne (t) (+400) exw Rourkela on 24 Jan'22.

About 4,620 t of transactions were recorded by SteelMint today against 1,500 t on 21 Jan.

The index remained supported following active demand and firming up of offers by manufacturers.

A bunch of deals were reportedly concluded for West Bengal and Bihar with freight charges at around INR 1,500-1,600/t, SteelMint learnt from sources.

The current price of iron ore-based DRI (CDRI) for FeM 78% material in Durgapur is at INR 36,300-36,400/t DAP, while Odisha (Rourkela) sponge iron prices are assessed at around INR 36,100-36,200/t DAP Durgapur for FeM 79-80% material.

Sources are expecting sponge iron prices to remain strong on higher raw material prices.

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) - Nine 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 six trades were recorded at INR 34,500/t, two deals at INR 34,400/t, and one deal at INR 34,600/t. The average price of these nine transactions was INR 34,536/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Nine offers were reported in the trading window and considered as T2 inputs. The average price of these nine was INR 34,479/t and given a 50% weightage in the final price calculation.
  
  

The final price for CDRI exw Rourkela was at INR 34,507/t, rounded to INR 34,500/t exw.

Click for detailed methodology

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