SteelMint: Limited trades weigh on Rourkela sponge iron index - 29 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,450/tonne (t) (- INR 350) exw Rourkela on 29 August, 2022.

About 500 t of transactions in CDRI were recorded by SteelMint today against 1,120 t on 27 August.

Market players are becoming more cautious due to the ongoing price corrections, which is why there are fewer queries. As a result, the index decreased on a daily basis.

The unpredictable price changes have had an impact on spot trade volumes, which have remained low. SteelMint learned from sources that the ongoing decline in steel prices in north India, particularly Punjab, has caused a downward trend in prices across other regions.

Trade dynamics

• Buyers from Patna decided to wait for the market to stabilize, so there were no bookings today.
  
  
• Local buyers are holding their bids for the time being since they expect prices to continue to decline.
  
  

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 at INR 35,500/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 35,500/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty-three offers reported in the trading window and considered as T2 inputs. The average price of these twenty-three was INR 35,435/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,468/t, rounded to INR 35,450/t exw.

Click for detailed methodology

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