SteelMint: Rourkela sponge iron index rises INR 250/t despite limited buying - 22 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,150/tonne (t) (+ INR 250) exw Rourkela on 22 June, 2022.

About 3,200 t of transactions in CDRI were recorded by SteelMint today against 3,500 t on 21 June.

Although the index rose, trades remained somewhat limited as buyers remained cautious, resulting in a slight drop in spot trades compared to yesterday. Today, deals were majorly reported from the Mandi and Bihar markets, SteelMint learnt from sources.

Market participants are still unclear about prices and are also waiting for OMC's auction which is slated for tomorrow (i.e 23 June, 2022), for clearer market directions.

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 32,000-32,600/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 32,187/t which is given a 50% weightage in the final price calculation.
  
  
• Other price indicators: Bids/offers/indicative (T2) - Fourteen offers were reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 32,082/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw-Rourkela was at INR 32,135/t, rounded to INR 32,150/t exw.

Click for detailed methodology

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