SteelMint: Rourkela sponge iron index falls on limited buying - 28 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 40,500/tonne (t) (- INR 250) exw Rourkela on 28 Mar'22.

About 1,700 t of transactions in CDRI were recorded today against 1,050 t on 25 Mar.

The index fell further on weak demand amidst uncertain price movements.

As a result, buyers opted to wait and watch rather than taking positions, which led to limited spot trading, SteelMint learned from sources.

Moreover, market participants informed that there was lack of liquidity in the market as banks would remain closed for two consecutive days which might result in spot trades slowing down in coming three-four days.

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 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 four trades were recorded at INR 40,500/t, and one deal each at INR 40,600/t, and INR 40,400/t. The average price of these six transactions was INR 40,517/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 21 was INR 40,528/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 40,523/t, rounded to INR 40,500/t exw.

Click for detailed methodology

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