SteelMint: Rourkela sponge iron index rises despite cautious buying - 12 May

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,900/tonne (t) (+ INR 100) exw Rourkela on 12 May'22.

About 900 t of transactions in CDRI were recorded by SteelMint today as against 2,500 t on 11 May.

The index rose slightly as steel prices rose in the first half. Later in the day buying enquiries remained dull and spot trades were reported low compared on a day-on-day basis, sources informed SteelMint.

Considering the ongoing price volatility, domestic trades are most likely to remain subdued, sources informed.

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) - Three trades in the range of INR 35,800-36,000/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 35,844/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these seventeen was INR 35,921/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,883/t, rounded to INR 35,900/t exw.

Click for detailed methodology

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