SteelMint: Rourkela sponge iron index rises despite limited enquiries - 2 Jul

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,750/tonne (t) (+ INR 250) exw Rourkela on 2 July, 2022.

About 1,300 t of transactions in CDRI were recorded by SteelMint today as against 6,050 t on 1 July.

The index rose as manufacturers hiked domestic sponge iron offers and, given decent demand, producers are keeping prices higher.

Although spot trades and enquiries were minimal today, prices trended higher on sufficient previous bookings, sources informed SteelMint.

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) - Four trades in the range of INR 33,700-34,000/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 33,740/t which is given a 50% weightage in the final price calculation.
  
  
• 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 33,733/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,737/t, rounded to INR 33,750/t exw.

Click for detailed methodology

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