SteelMint: Rourkela sponge iron index falls on limited enquiries - 19 Jul

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,500/tonne (t) (- INR 400) exw-Rourkela on 19 July, 2022.

About 2,700 t of transactions were recorded by SteelMint today as against 4,300 t on 18 July.

The continuous price corrections are making market participants cautious, leading to limited inquiries. The index, as a result, dropped on a d-o-d basis.

Spot trade volumes have been affected due to the uncertain price movements, SteelMint learnt 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) - Eight trades in the range of INR 35,400-35,700/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 35,504/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twelve offers reported in the trading window and considered as T2 inputs. The average price of these twelve was INR 35,514/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,509/t, rounded to INR 35,500/t exw.

Click for detailed methodology

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