SteelMint: Rourkela sponge iron index plunges INR 2,200/t on unclear market trends - 23 May

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,850/tonne (t) (- INR 2,200) exw Rourkela on 23 May'22.

Nil transactions in CDRI were recorded by SteelMint today against 1,500 t on 21 May.

The index fell steeply on account of hefty export duties imposed by the government on steel and steel-making raw materials. Market participants have now opted for a wait-and-watch approach till they get clear directions.

This in turn led to no offers being floated by the major sellers. Even the regular buyers held back their bids in anticipation of further price drops.

A sharp price fall in the billets market was also witnessed amidst the same concerns. As per the daily assessment, Rourkela's billet prices fell by INR 3,500/t today.

Overall, domestic trade is most likely to remain disturbed till prices stabilize.

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) - Total transactions reported today was Nil.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Thirteen offers reported in the trading window and considered as T2 inputs. The average price of these thirteen was INR 32,833/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,833/t, rounded to INR 32,850/t exw.

Click for detailed methodology

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