SteelMint: Rourkela sponge iron index rises further on active buying from Patna market - 3 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,200/tonne (t) (+ INR 300) exw-Rourkela on 3 June, 2022.

About 7,500 t of transactions in CDRI were recorded by SteelMint today against 5,920 t on 2 June.

The index rose on the back of active demand from Patna (northern India) and higher offers floated by suppliers. Producers kept prices on the upside as several deals took place today following the d-o-d rise in Rourkela billets prices by INR 300-500/t.

Looking at the rising prices, buyers started taking positions which led to healthy trade volumes. However, in the latter half of the trading session, enquiries were limited as steel prices in the Punjab market saw a bit of correction, 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) - Ten trades in the range of INR 31,900-33,000/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 32,163/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 32,193/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,178/t, rounded to INR 32,200/t exw.

Click for detailed methodology

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