SteelMint: Rourkela sponge iron index rises further on higher offers - 4 July

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,850/tonne (t) (+INR 100) exw-Rourkela on 4 July 2022.

The index edged higher as manufacturers hiked offers on the back of active demand.

About 2,840 t of transactions were recorded today against 1,300 t on 2 July.

Sources are expecting that sponge iron prices will remain on the higher side on strong buying interest and healthy deals happening in different states along with seasonal low productivity.

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) - Eight trades in the range of INR 33,700-34,000/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 33,876/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 33,788/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 33,832/t, rounded to INR 33,850/t exw.

Click for detailed methodology

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