SteelMint: Rourkela sponge iron index dips on limited enquiries - 3 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 36,750/tonne (t) (- INR 100) exw-Rourkela on 3 August, 2022.

About 2,365 t of transactions were recorded today against 5,830 t on 2 August.

The index fell on limited enquiries today. There was lack of buying interest among participants, thus, spot trades remained low.

Buyers booked sufficient orders over the past couple of days, hence, decided to held back their bids and booked material as per requirement, SteelMint learnt from sources.

Trade dynamics

• Patna-based buyers mostly opted for a wait-and-watch approach amid the price correction in the spot market and in an anticipation of further reduction in prices.
  
  
• Participants from Maharashtra preferred to book the material from Bellary against Odisha on lower costs.
  
  

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) - Nine trades in the range of INR 36,700-37,000/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 36,754/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 36,764/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,759/t, rounded to INR 36,750/t exw.

Click for detailed methodology

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