SteelMint: Rourkela sponge iron index rises on active demand - 30 May

SteelMint's daily sponge iron, CDRI, index was assessed at INR 32,650/tonne (t) (+ INR 650/t) exw-Rourkela on 30 May 2022.

About 5,100 t of transactions in CDRI were recorded by SteelMint today against 4,100 t on 28 May.

The index increased further on active demand and price recovery in the northern region of Punjab.

Demand was limited during the opening hours, while, in the late trading hours, it improved, which led to a surge in offers, and ultimately spot trade deals increased today, SteelMint notes.

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) - Thirteen trades in the range of INR 32,300-33,250/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 32,782/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 32,483/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,633/t, rounded to INR 32,650/t exw.

Click for detailed methodology

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