SteelMint: Rourkela sponge iron index dips on falling steel prices - 19 Sep

SteelMint's daily sponge iron, CDRI index, was assessed at INR 34,400/tonne (t) (- INR 250) exw-Rourkela on 19 September, 2022.

About 1,200 t of transactions were recorded today as against 1,020 t on 16 September.

Market participants have become cautious due to the consistent price corrections which eventually resulted in fewer enquiries. Hence, an overall negative market has weighed on the index d-o-d. Lower participation soon after the holidays coupled with uncertain price movements also impacted spot trade volumes, SteelMint learned from sources.

Buyers are anticipating offers to soften further in line with the sluggish market trends.

Trade dynamics

• Participants from Patna held back from taking positions until the market directions become clear. Thus, they booked limited material.
  
  

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) - Four trades in the range of INR 34,300-34,500/t were recorded during the 11:30 am to 5:30 pm SteelMint trading window considered for final price calculation as T1 inputs. The average of these transactions was INR 34,392/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers were reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 34,428/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,410/t, rounded to INR 34,400/t exw.

Click for detailed methodology

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