SteelMint: Rourkela sponge iron index rises further on active demand - 28 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,500/tonne (t) (+ INR 400) exw Rourkela on 28 June, 2022.

About 3,120 t of transactions in CDRI were recorded by SteelMint today as against 9,050 t on 27 June.

The index rose further following active demand which led to suppliers keeping sponge iron prices firm. Billet prices in Rourkela increased by INR 550/t exw, d-o-d, sources informed.

However, spot trades were comparatively few compared to yesterday amidst sufficient previous bookings.

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) - Eleven trades in the range of INR 33,100-33,800/t were recorded during the 11:30 am to 5:00 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 33,540/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 33,467/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,504/t, rounded to INR 33,500/t exw.

Click for detailed methodology

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