SteelMint: Rourkela sponge iron index falls on weak buying - 20 Sep
SteelMint’s daily sponge iron, CDRI index was assessed at INR 34,000/tonne (t) (- INR 400) exw-Rourkela on 20 September, 2022. About 960 t of transactions were ...
![SteelMint: Rourkela sponge iron index falls on weak buying - 20 Sep](https://www.steelmint.com/news/wp-content/uploads/2022/09/RKL-index-13.png)
SteelMint's daily sponge iron, CDRI index was assessed at INR 34,000/tonne (t) (- INR 400) exw-Rourkela on 20 September, 2022.
About 960 t of transactions were recorded today as against 1,200 t on 19 September.
Following a significant drop in steel prices in Punjab, in northern India, suppliers were forced to lower their prices. As a result, the index continued to fall amid weak buying activity. SteelMint learned from sources that spot trading was down significantly d-o-d.
Trade dynamics
- Buyers from Maharashtra bid for premium grade (FeM 80-82%) sponge iron from Odisha at INR 35,000/t exw-Rourkela, against offers at INR 35,500/t exw-Rourkela.
- Participants from Bihar were inactive and waited for clearer market directions.
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) - Four trades in the range of INR 34,000-34,100/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 34,022/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 34,020/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 34,021/t, rounded to INR 34,000/t exw.
Click for detailed methodology
T1 - Trade, T2 - Offer/Bid/Indicative, *Normalized price as per methodology