SteelMint: Rourkela sponge iron index dips on limited trades - 4 Apr

SteelMint's daily sponge iron, CDRI, index is assessed at INR 40,000/tonne (t) (- INR 150) exw Rourkela on 4 Apr'22.

About 650 t of transactions in CDRI were recorded by SteelMint today compared with 2,700 t on 2 April.

The index fell on account of poor buying interest in the spot market. Moreover, there was lack of confidence among market participants.

Price correction in semi-finished steel today held buyers back from from taking positions amid an unclear market directions, sources informed.

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) - Two trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Both the trades were recorded at INR 40,000/t. The average price of these two transactions was INR 40,000/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Twenty one offers reported in the trading window and considered as T2 inputs. The average price of these 21 was INR 39,992/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 39,996/t, rounded to INR 40,000/t exw.

Click for detailed methodology

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