SteelMint: Rourkela sponge iron index falls further on weak buying interest – 15 Mar

SteelMint’s daily sponge iron, CDRI, index is assessed at INR 40,050/tonne (t) (- INR 1,550) exw Rourkela on 15 Mar’22.

About 500 t of transactions in CDRI were recorded by SteelMint today as against 400 t on 14 Mar.

The index moved down on weak enquiries following the price correction in the semi-finished market. Spot trades continued to remain on the lower side.

Domestic trades are likely to remain silent this week due to the upcoming Holi festival, SteelMint notes.

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) – Two 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 40,000/t, and one deal at INR 39,800/t. The average price of these two transactions was INR 39,960/t and given a 50% weightage in the final price calculation.
• Other Price Indicators – bids/offers/indicative (T2) – Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 40,182/t and given a 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela was at INR 40,071/t, rounded to INR 40,050/t exw.

Click for detailed methodology

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