SteelMint: Rourkela sponge iron index falls INR 450/t on soft buying - 21 Jul

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,100/tonne (t) (- INR 450) exw Rourkela on 21 July, 2022.

About 2,100 t of transactions in CDRI were recorded by SteelMint today as against 5,460 t on 20 July.

The index fell as trade volumes were recorded at less-than-average levels, resulting in softening of offers.

There was lack of confidence among market participants with regard to price movements. Thus, spot trades continued to remain somewhat limited. Buyers kept booking material as per requirement even as price correction continued to happen.

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 35,000-35,500/t were 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 35,147/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 35,056/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,102/t, rounded to INR 35,100/t exw.

Click for detailed methodology

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