SteelMint: Rourkela sponge iron prices rise further on bullish trends - 9 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 43,900/tonne (t) (+ INR 1,500) exw Rourkela on 9 Mar'22.

About 1,670 t of transactions in CDRI were recorded by SteelMint today against 970 t on 8 Mar.

The index rose with producers keeping prices higher. Higher coal and raw material prices are the major factors behind this rise. Amidst the bullish outlook, prices are trending higher. However, demand continues to remain moderate, SteelMint notes.

Looking at these factors, market participants believe that sponge iron prices are likely to remain supported in the domestic market.

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 44,000/t, and two deals at INR 43,800/t. The average price of these four transactions was INR 43,878/t and given a 50% weightage in the final price calculation. Apart from this one trade at INR 43,500/t was also recorded at 11:00 am but was excluded due to timing.
  
  
• 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 43,964/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 43,921/t, rounded to INR 43,900/t exw.

Click for detailed methodology

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