SteelMint: Rourkela sponge iron index drops marginally on dull demand - 12 Dec

SteelMint's daily sponge iron, CDRI, index was assessed at INR 31,700/tonne (t) (- INR 50) exw-Rourkela on 12 December, 2022.

About 1,800 t of transactions were recorded today as against 700 t on 10 December.

Though there was dull demand seen in the market, trade volumes improved marginally d-o-d compared to 10 December but remained below average. This resulted in a decline in offers today. Market participants lacked confidence in the direction of price changes. As a result, spot trading remained rather constrained.

Premium grade (FeM 80-82%) sponge iron from Odisha was booked at INR 33,200/t exw-Rourkela.

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) - Six trades in the range of INR 31,500-31,900/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 31,681/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 31,744/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,681/t, rounded to INR 31,700/t exw.

Click for detailed methodology

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