SteelMint: Average demand pulls down Rourkela sponge iron index by INR 150/t - 21 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 39,300/tonne (t) (- INR 150) exw Rourkela on 21 Apr'22.

About 3,350 t of transactions in CDRI were recorded by SteelMint today as against 1,300 t on 20 Apr.

Although the index fell, trades improved slightly compared to yesterday. However, the volumes still remained moderate as a majority of buyers are either packed with orders or waiting for clearer market directions, resulting in average trades and decline in prices.

Overall, demand for sponge iron was still limited as buying interest in the semi-finished steel market remained dull 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 in the range of INR 39,300-39,800/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 39,423/t which is 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 39,203/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 39,313/t, rounded to INR 39,300/t exw.

Click for detailed methodology

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