SteelMint: Rourkela sponge iron index falls on muted trades - 29 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 40,250/tonne (t) (- INR 250) exw Rourkela on 29 Mar'22.

About 650 t of transactions in CDRI were recorded by SteelMint today as against 1,700 t on 28 Mar.

The index fell on account of poor buying interest in the spot market. Moreover, there was lack of confidence among market participants about price movements.

Market participants informed that they were waiting for clearer market directions to emerge before taking positions. In addition, the fiscal year-end has somehow affected trades as a majority of market participants are busy aligning their balance sheets. These factors collectively resulted in muted trading today.

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) - Two 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 40,800/t, and one deal at INR 40,300/t. The average price of these two transactions was INR 40,300/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty two offers reported in the trading window and considered as T2 inputs. The average price of these twenty two was INR 40,169/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 40,235/t, rounded to INR 40,250/t exw.

Click for detailed methodology

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