SteelMint: Rourkela sponge iron index falls slightly despite improved trades - 17 May

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,500/tonne (t) (- INR 50) exw-Rourkela on 17 May 2022.

About 4,310 t of transactions in CDRI were recorded by SteelMint today as against 2,600 t on 16 May.

Although the index fell, trades improved as buyers resumed purchases leading to a rise in spot trades. Spot trades rose by 66% day-on-day (d-o-d) today.

Fair number of deals were reportedly concluded in the local market as well as for Patna, with freight charges at around INR 1,700/t, sources informed SteelMint.

Rationale -

This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and are given a weightage of 50%, whereas other data sets are considered as T2 and are given a weightage of the balance 50%.

• Transactions (T1) - Eleven trades in the range of INR 35,400-35,600/t were recorded from 11:30 am to 5:30 pm SteelMint trading window and were considered as T1 inputs for final price calculation. The average of these transactions was INR 35,500/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers were reported in the trading window and were considered as T2 inputs. The average price of these thirteen offers was INR 35,455/t and was given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw-Rourkela was at INR 35,477/t, rounded to INR 35,500/t exw.

Click for detailed methodology

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