SteelMint: Rourkela sponge iron index rises on active buying from Maharashtra - 16 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,250/tonne (t) (+ INR 350) exw Rourkela on 16 June, 2022.

About 7,700 t of transactions in CDRI were recorded by SteelMint today as against 6,000 t on 15 June.

The index rose on the back of active demand in the Jalna market and higher offers floated by suppliers. Producers kept prices strong as several deals took place today following the d-o-d rise in Rourkela billet prices by INR 300-500/t.

Looking at rising prices, buyers started taking positions which led to healthy trade volumes. However, in the latter half of today's trading session, inquiries were limited as steel prices corrected in the Punjab market, sources informed.

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) - Twelve trades in the range of INR 31,800-32,500/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 32,270/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 32,233/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,252/t, rounded to INR 32,250/t exw.

Click for detailed methodology

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