SteelMint: Rourkela sponge iron index falls INR 150/t on limited enquiries – 31 Jan

SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,800/tonne (t) (-150) exw Rourkela on 31 Jan’22.

About 700 t of transactions in CDRI were recorded by SteelMint today against 1,600 t on 28 Jan.

The index fell today after rising continuously for the last few days on limited enquiries and also due to the fact that sufficient bookings resulted in thin trading today. As a result, prices edged down.

In addition, manufacturers held back their offers on account of the upcoming Union Budget, opting to wait and watch, which led to the correction in prices, SteelMint learnt from sources.

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 36,000/t, and one deal each at INR 35,900/t, and INR 35,800/t. The average price of these three transactions was INR 35,825/t and given a 50% weightage in the final price calculation.
• Other Price Indicators – bids/offers/indicative (T2) –Sixteen offers were reported in the trading window and considered as T2 inputs. The average price of these 16 was INR 35,775/t and given 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela stood at INR 35,800/t exw.

Click for detailed methodology

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