SteelMint: Rourkela sponge iron index falls as festive fervour grips market - 27 Oct

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,750/tonne (t) (- INR 250) exw-Rourkela on 27 October, 2022.

About 1,110 t of transactions were recorded today as against 1,900 t on 22 October.

The holidays are having an impact on market demand as regards buying, as only urgent purchases were witnessed in the market. Due to low trade volumes today, the index decreased.

As there was no interest in buying, spot trades remained poor. The market for semi-finished steel, too, saw little buying interest today.

About 200 t of sponge PDRI (FeM 77-79%) trades in Odisha were recorded today as against 1,350 t on 22 October. The material was booked by Raipur-based buyers.

Trade dynamics

• Due to the forthcoming Chhat puja festivities, Patna-based buyers are mostly inactive and this would ultimately result in no buying activity this week.
  
  

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) - Five trades in the range of INR 33,700-33,800/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 33,736/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 33,746/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,741/t, rounded to INR 33,750/t exw.

Click for detailed methodology

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