SteelMint: Rourkela sponge iron index falls on limited enquiries - 22 Sep

SteelMint's daily sponge iron, CDRI index, was assessed at INR 33,500/tonne (t) (- INR 500) exw-Rourkela on 22 September, 2022.

About 2,100 t of transactions were recorded today as against 4,760 t on 21 September.

Price corrections are making market participants wary, resulting in fewer enquiries. As a result, the index fell d-o-d.

Suppliers were under pressure to sell, which resulted in a significant drop in offers. After placing sufficient orders yesterday, some major buyers have delayed their purchases today.

Trade dynamics

• With sufficient orders in hand, Patna buyers have purchased material solely for their needs.
  
  

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) - Five trades in the range of INR 33,500-33,600/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 33,533/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 33,515/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,524/t, rounded to INR 33,500/t exw.

Click for detailed methodology

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