SteelMint: Rourkela sponge iron index continues to fall amid cautious buying - 4 Nov

SteelMint's daily sponge iron, CDRI index, was assessed at INR 32,650/tonne (t) (- INR 350) exw-Rourkela on 4 November, 2022.

About 1,550 t of transactions were recorded today compared to 950 t on 3 November.

Although trade volumes improved marginally d-o-d, these remained below average which led to a drop in offers today. Market participants were uncertain about the price trends as a result of which spot trading remained rather limited. Even though price volatility persists, buyers are still ordering materials according to their needs.

About 1,500 t of sponge PDRI (FeM 77-78%) deals were recorded today as against 800 t yesterday from Odisha. Deals were concluded on DAP Raipur basis.

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) - Five trades in the range of INR 32,500-33,000/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 32,616/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 32,688/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,652/t, rounded to INR 32,650/t exw.

Click for detailed methodology

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