SteelMint: Rourkela sponge iron index inches up despite moderate spot trades - 20 Jul

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,550/tonne (t) (+ INR 50) exw Rourkela on 20 July, 2022.

About 5,460 t of transactions in CDRI were recorded by SteelMint today as against 2,700 t on 19 July.

The index increased slightly on account of steel prices firming up in the northern region during the first half today. Thus, an improvement in spot trades was witnessed today compared to yesterday. Several deals were reported to Patna.

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) - Ten trades in the range of INR 35,450-36,000/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 35,532/t which is given a 50% weightage in the final price calculation. Apart from this one trade at INR 35,500/t was also recorded at 5:48 pm, but was excluded due to timing.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 35,550/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,541/t, rounded to INR 35,550/t exw.

Click for detailed methodology

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