SteelMint: Rourkela sponge iron index falls further on low demand

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,550/tonne (t) (- INR 450) exw Rourkela on 16 May 2022.

About 2,600 t of transactions in CDRI were recorded by SteelMint today against 2,400 t on 14 May.

The index fell on account of limited trades and market participants procured material only as per requirements today. Spot buying interest was reportedly limited.

Buying interest in semi-finished steel market remained dull today as Rourkela billet prices fell INR 1,000/t on a day-on-day basis, sources informed SteelMint.

Rationale -

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and are given a weightage of 50%, whereas other data sets are considered as T2 and are given a weightage of the balance 50%.

• Transactions (T1) - Seven trades in the range of INR 35,500-36,000/t were recorded from 11:30 am to 5:30 pm SteelMint trading window which were considered for the final price calculation as T1 inputs. The average of these transactions was INR 35,500/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers were reported in the trading window and were considered as T2 inputs. The average price of these fifteen offers was INR 35,638/t and was given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw-Rourkela was at INR 35,569/t, rounded to INR 35,550/t exw.

Click for detailed methodology

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