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SteelMint: Rourkela sponge iron index rises INR 650/t on surging trade volumes - 27 Jun

SteelMint’s daily sponge iron, CDRI, index was assessed at INR 33,100/tonne (t) (+ INR 650) exw Rourkela on 27 June, 2022. About 9,050 t of transactions in CDRI...

Sponge Iron
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27 Jun 2022, 18:29 IST
SteelMint: Rourkela sponge iron index rises INR 650/t on surging trade volumes - 27 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 33,100/tonne (t) (+ INR 650) exw Rourkela on 27 June, 2022.

About 9,050 t of transactions in CDRI were recorded by SteelMint today as against 1,350 t on 25 June.

The index rose on active demand amidst higher offers floated by the suppliers. Producers kept prices as several deals took place today, which led to a significant rise in spot trade volumes, following the hike in billet offers by INR 1,100/t, d-o-d.

Going forward, the movement in sponge iron prices will depend more on billet prices, as the availability of sponge iron is sufficient in the spot market, 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) - Eighteen trades in the range of INR 32,700-33,300/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 33,148/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 33,017/t and given a 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela was at INR 33,083/t, rounded to INR 33,100/t exw.

Click for detailed methodology


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

 

27 Jun 2022, 18:29 IST

 

 

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