SteelMint: Limited trades weigh on Rourkela sponge iron index - 10 Dec

SteelMint's daily sponge iron, CDRI, index was assessed at INR 31,750/tonne (t) (- INR 250) exw-Rourkela on 10 December, 2022.

About 700 t of transactions were recorded today as against 2,500 t on 9 December.

The index decreased due to a few trades reported today, Market participants showed little interest in buying so as a result spot trade volumes remained low.

SteelMint learned from various sources that since customers had placed enough orders this week, they chose not to place fresh bids. Additionally, with falling steel prices in the northern region, the majority of buyers opted to wait and watch 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) - Two trades in the range of INR 31,700-31,800/t were recorded during the 11:30 am to 3:30 pm SteelMint's trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 31,743/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 31,794/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,769/t, rounded to INR 31,750/t exw.

Click for detailed methodology

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