SteelMint: Rourkela sponge iron index dips on weak purchase enquiries - 1 Dec

SteelMint's daily sponge iron, CDRI, index was assessed at INR 31,100/tonne (t) (- INR 250) exw-Rourkela on 1 December, 2022.

About 1,800 t of transactions were recorded today as against 4,050 t on 30 November.

The index was weighed down by lower purchase enquiries and a significant price adjustment in the northern region. Spot trading slowed down as a result of it. Having placed enough orders over the past couple of days, a few major buyers decided to hold back their purchases today. Due to a decrease in spot trade volumes d-o-d, demand at the current offers remained low.

Trade dynamics

• Patna-based buyers were less active today due to sufficient bookings having placed already.
  
  

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) - Seven trades in the range of INR 31,000-31,300/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 31,092/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 31,131/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,112/t, rounded to INR 31,100/t exw.

Click for detailed methodology

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