SteelMint: Rourkela sponge iron index falls further on sluggish trends- 6 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,750/tonne (t) (- INR 500) exw Rourkela on 6 August, 2022.

About 800 t of transactions in CDRI were recorded by SteelMint today against 850 t on 5 August.

The index fell on account of limited trades as buyers are engaged in need-based procurement to fulfil immediate requirements. Spot buying interest was weak today.

Moreover, price correction in key markets remained the main factor behind dull trade volumes.

Trade dynamics

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

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) - Four trades in the range of INR 35,700-36,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 35,817/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 35,721/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,769/t, rounded to INR 35,750/t exw.

Click for detailed methodology

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