SteelMint: Rourkela sponge iron index edges down on lower bids - 4 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 36,650/tonne (t) (- INR 100) exw-Rourkela on 4 August, 2022.

About 2,890 t of transactions were recorded today against 2,365 t on 3 August.

The index dropped further as buyers quoted lower bids, hoping for further decline in offers. However, spot trades reportedly increased by 22% on a d-o-d basis, but still remained less than average.

Trade dynamics

• Participants from Patna were resistant to buy at the floated offers and therefore, booked limited quantity of the material.
  
  

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 range of INR 36,500-36,750/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 36,624/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 36,686/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 36,655/t, rounded to INR 36,650/t exw.

Click for detailed methodology

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