SteelMint: Limited trades weigh on Rourkela sponge iron index - 18 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,000/tonne (t) (- INR 300) exw Rourkela on 18 June, 2022.

About 1,700 t of transactions in CDRI were recorded by SteelMint today against 6,620 t on 17 June.

The index fell on limited trades reported today. There was lack of buying interest through participants, thus spot trades remained low.

Buyers booked sufficient orders over the past couple of days; hence, buyers decided to held back their bids and booked material as per requirement, SteelMint learnt from sources.

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 32,000-32,200/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 32,031/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 32,010/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,021/t, rounded to INR 32,000/t exw.

Click for detailed methodology

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