SteelMint: Limited trades weigh on Rourkela sponge iron index - 28 Oct

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,550/tonne (t) (- INR 200) exw-Rourkela on 28 October, 2022.

About 1,250 t of transactions were recorded today as against 1,110 t on 27 October.

The index slipped on limited market activity. However, trade volumes increased slightly d-o-d while remaining below average. There were significantly more purchasers than yesterday, which increased spot trade volumes. Additionally, regional steel prices were affected by declining prices in the northern region.

However, market participants believe that demand may gather steam post Chhath festival.

About 1,200 t of sponge PDRI (FeM 77-78%) trades in Odisha were recorded today as against 200 t yesterday. The material was booked by Raipur-based buyers.

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) - Three trades in the range of INR 33,500-33,600/t was 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 33,514/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 33,550/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,532/t, rounded to INR 33,550/t exw.

Click for detailed methodology

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