SteelMint: Rourkela sponge iron index stable amid limited spot trades- 27 Aug

SteelMint's daily sponge iron, CDRI, index was assessed at INR 35,800/tonne (t) (=) exw Rourkela on 27 August, 2022.

About 1,120 t of transactions were recorded today against 1,700 t on 26 August.

The index remained unchanged due to limited trades and lower bids amid volatile prices in northern India. This made buyers cautious, and they purchased material based on immediate need and at a lower price.

Trade dynamics

• Market players from Patna became more cautious as a result of the continuous price volatility, which eventually resulted in few enquiries.
  
  

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) - Three trades in the range of INR 35,500-35,800/t were recorded during the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 35,800/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Nineteen offers reported in the trading window and considered as T2 inputs. The average price of these nineteen was INR 35,756/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 35,778/t, rounded to INR 35,800/t exw.

Click for detailed methodology

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