SteelMint: Rourkela sponge iron index inches up despite limited spot trade volumes- 26 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,800/tonne (t) (+ INR 100) exw-Rourkela on 26 August, 2022.

About 1,700 t of transactions were recorded against 6,250 t on 25 August.

Despite a slight uptick in the index, spot trades remained subdued due to limited inquiries today as ample bookings were made in the previous few days.

Although producers continued offering high prices, buying activity remained limited at quoted offers.

Trade dynamics

• Buyers from Patna market declined higher offers because they already had enough orders.
  
  
• Similarly buyers from Jalna market have enough material in hand and have chosen to wait.
  
  

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 35,700-36,000/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 35,800/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Twenty two offers reported in the trading window and considered as T2 inputs. The average price of these twenty two was INR 35,821/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,811/t, rounded to INR 35,800/t exw.

Click for detailed methodology

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