SteelMint: Rourkela sponge iron index falls INR 500/t on weak buying – 9 Feb

SteelMint’s daily sponge iron, CDRI, index is assessed at INR 35,600/tonne (t) (-500) exw Rourkela on 9 Feb’22.

About 1,600 t of transactions in CDRI were recorded by SteelMint today against 5,550 t on 8 Feb.

The index moved down on persistent weak demand and  lack of confidence among market participants as to whether the market would sustain.

Limited buying interest was also seen in the semi-finished steel market today. Thus, spot buying interest remained dull, sources informed SteelMint.

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 two trades were recorded at INR 35,500/t, and one deal at INR 35,800/t. The average price of these three transactions was INR 35,594/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 35,588/t and given a 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela was at INR 35,591/t, rounded to INR 35,600/t exw.

Click for detailed methodology

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