SteelMint: Rourkela sponge iron index falls despite improved trades – 23 Mar

SteelMint’s daily sponge iron, CDRI, index is assessed at INR 42,000/tonne (t) (- INR 800) exw Rourkela on 23 Mar’22.

About 2,700 t of transactions in CDRI were recorded by SteelMint today against 600 t on 22 March.

Although the index fell, trades improved as a few buyers resumed purchases resulting in a rise in spot trades compared to yesterday, SteelMint learnt from sources.

A sharp price fall in the billets market resulted in limited demand for sponge iron. As per daily assessment, billet prices in Rourkela fell by INR 1,500/t today.

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) – Six 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 42,000/t, and one deal each at INR 42,700/t, INR 42,500/t, and INR 42,400/t. The average price of these six transactions was INR 42,000/t and given a 50% weightage in the final price calculation.
• Other Price Indicators – bids/offers/indicative (T2) –Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these 14 was INR 42,042/t and given a 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela was at INR 42,021/t, rounded to INR 42,000/t exw.

Click for detailed methodology

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