SteelMint: Rourkela sponge iron index inches down on limited trade - 17 Oct

SteelMint's daily sponge iron, CDRI index, was assessed at INR 33,450/tonne (t) (- INR 150) exw-Rourkela on 17 October, 2022.

About 1,620 t of transactions were recorded today as against 200 t on 15 October. The index decreased as a result of lower-than-average trade volumes and softening offers.

Market participants were uncertain about price trends which resulted in limited spot trade. Even as price corrections persisted, buyers still ordered only the material they needed.

About 1,300 t of sponge PDRI (FeM 77-78%) deals in Odisha were recorded today as against 1,000 t yesterday. The material was booked by Raipur-based buyers.

Trade dynamics

• Weak trading activity was seen as Patna-based participants were on the sidelines, waiting for price clarity.
  
  

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) - Five trades in the range of INR 33,400-33,500/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 33,450/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these sixteen was INR 33,486/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,468/t, rounded to INR 33,450/t exw.

Click for detailed methodology

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