SteelMint: Rourkela sponge iron index edges down despite improved trades - 1 Jun

SteelMint's daily sponge iron, CDRI, index is assessed at INR 31,900/tonne (t) (- INR 300) exw Rourkela on 1 Jun'22.

About 4,250 t of transactions in CDRI were recorded by SteelMint today as against 1,005 t on 31 May.

While the index dropped, a significant improvement in spot trades was seen today compared to yesterday. Several deals were reported to Patna and Mandi Gobindgarh, SteelMint learnt from sources.

Purchase enquiries increased in the second of today's trading session amidst rising steel prices in the Punjab market, which led producers to float offers at higher levels.

Moreover, an export deal of 2,500 t CDRI mix material (80% FeM) was reported at INR 34,000/t loaded on to wagon (LTW) to Nepal, by an Odisha-based sponge iron supplier.

Overall, market participants are still unclear about price movements and are engaged in needs-based procurement.

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) - Eight trades in the price range of INR 31,700-32,500/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 31,979/t, which has been given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Eleven offers were reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 31,785/t, which was given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,882/t, rounded to INR 31,900/t exw.

Click for detailed methodology

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