SteelMint: Rourkela sponge iron index edges down on low spot trade volumes - 8 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,700/tonne (t) (- INR 50) exw Rourkela on 8 August, 2022.

About 3,400 t CDRI transactions were recorded by SteelMint today against 800 t on 6 August.

The index dropped as spot trades remained limited compared to the average on account of unclear market trends. Hence buyers booked as per their needs, sources informed SteelMint.

Trade dynamics

• Overall, market participants are still unsure 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) - Seven trades in the range of INR 35,600-36,000/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 35,714/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 35,713/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,714/t, rounded to INR 35,700/t exw.

Click for detailed methodology

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