SteelMint: Rourkela sponge iron index falls on weak buying interest - 15 Dec

SteelMint's daily sponge iron, CDRI, index was assessed at INR 31,150/tonne (t) (- INR 250) exw-Rourkela on 15 December, 2022.

About 1,050 t of transactions were recorded today as against 800 t on 14 December.

The index declined amid witnessing weak buying activity and limited trading throughout the day. Lack of buying interest resulted in low spot trades.

The semi-finished steel market saw a dull day with limited buying interest. Lack of trading activity in the semi-finished steel market is a matter of concern as it indicates a broader weakness in the steel industry. The slowdown in the construction and other industries has led to a decline in demand for semi-finished steel products.

While prices may stabilise in the near future, it remains to be seen how the market recovers in the near term.

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 31,000-31,300/t was 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 31,114/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 31,169/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,142/t, rounded to INR 31,150/t exw.

Click for detailed methodology

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