SteelMint: Rourkela sponge iron index slips to three-month low on weak demand - 18 May

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,000/tonne (t) (- INR 500) exw Rourkela on 18 May'22. A similar price range was last recorded during mid-Feb'22.

About 2,600 t of transactions in CDRI were recorded by SteelMint today as against 4,310 t on 17 May.

The index fell because of persistent weakness in demand in the spot market following poor offtake of semi-finished steel products.

The drop in billet prices resulted in weak demand for sponge iron. As per daily assessment, Rourkela billet prices fell by INR 800/t today.

As a result, spot trades remained limited throughout the day leading to a fall in sponge prices.

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 34,800-35,500/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 35,041/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 35,000/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,021/t, rounded to INR 35,000/t exw.

Click for detailed methodology

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