SteelMint: Rourkela sponge iron index falls slightly despite improved trades - 27 May

SteelMint's daily sponge iron, CDRI, index is assessed at INR 31,700/tonne (t) (- INR 50) exw Rourkela on 27 May'22.

About 5,100 t of transactions in CDRI were recorded by SteelMint today as against 1,755 t on 26 May.

The index fell slightly but trades improved as buyers resumed purchases. Spot trades rose by a huge margin of 191% day-on-day today.

A fair number of deals were reportedly concluded in the local market as well as for Mandi Gobindgarh and Himachal Pradesh, sources informed SteelMint.

The rise in steel prices in the first half today prompted producers to keep sponge prices unchanged resulting in a rise in spot trades. Later in the day, however, prices softened a bit amidst falling steel prices, especially in the Punjab market.

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 31,500-32,000/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 31,735/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eighteen offers reported in the trading window and considered as T2 inputs. The average price of these eighteen was INR 31,663/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,699/t, rounded to INR 31,700/t exw.

Click for detailed methodology

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