SteelMint: Active demand lifts Rourkela sponge iron index - 17 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,300/tonne (t) (+ INR 50) exw Rourkela on 17 June, 2022.

About 6,620 t of transactions in CDRI were recorded by SteelMint today as against 7,700 t on 16 June.

The index rose due to rising steel prices especially in Punjab. Producers kept prices strong as several deals took place triggering the rise in prices today, sources informed SteelMint.

Billet prices remained strong across regions, which kept sponge iron prices supported. Rourkela billet prices increased by up to INR 700/t on a d-o-d basis.

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) - Twelve trades in the range of INR 32,100-32,750/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 32,269/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 32,286/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,278/t, rounded to INR 32,300/t exw.

Click for detailed methodology

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