SteelMint: Rourkela sponge iron index edges up despite dull demand - 1 Nov

SteelMint's daily sponge iron, CDRI index was assessed at INR 33,450/tonne (t) (+ INR 50) exw-Rourkela on 1 November, 2022.

About 1,510 t of transactions were recorded today as against 2,450 t on 31 October.

The index increased somewhat, but there were very few deals throughout the day due to weak demand. Thus, purchasers only engaged in need-based procurements. Today's interest in spot purchases were low. Furthermore, low transaction volumes continued to be attributed to unpredictable price movements.

Going forward, market participants are waiting for prices to stabilise.

Trade dynamics

• Because Patna-based customers are still not very active, they were only able to reserve a smaller amount of supplies.
  
  

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 33,400-33,500/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 33,417/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 33,457/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,437/t, rounded to INR 33,450/t exw.

Click for detailed methodology

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