SteelMint: Rourkela sponge iron index falls INR 250/t on weak buying - 11 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 43,350/tonne (t) (- INR 250) exw Rourkela on 11 Mar'22.

About 900 t of transactions in CDRI were recorded by SteelMint today against 1,400 t on 10 Mar.

The index fell further on weak demand amidst uncertain price movements in major locations of the country.

As a result, buyers opted to wait and watch rather than taking positions, which led to spot trading slowing down over the past couple of days, SteelMint learned from sources.

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) - Three trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which one trade was recorded at INR 43,700/t, and one deal each at INR 43,500/t, and INR 43,200/t. The average price of these three transactions was INR 43,329/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty one offers reported in the trading window and considered as T2 inputs. The average price of these twenty one was INR 43,393/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 43,361/t, rounded to INR 43,350/t exw.

Click for detailed methodology

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