SteelMint: Rourkela sponge iron index dips on few enquiries - 5 Sep

SteelMint's daily sponge iron, CDRI, index was assessed at INR 34,750/tonne (t) (- INR 350) exw-Rourkela on 5 September, 2022.

About 1,760 t of transactions were recorded today as against 1,620 t on 3 September.

The index fell due to only a few number of enquiries heard and a significant price adjustment in north India. Market trends turned sluggish as a result and spot trades continued to move slow.

Trade dynamics

• The majority of buyers in Patna are reluctant to buy at prevailing prices, which are considered high as there are expectations of further price correction.
  
  

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 34,800-34,900/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 34,845/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers were reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 34,688/t and given 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,767/t, rounded to INR 34,750/t exw.

Click for detailed methodology

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