SteelMint: Rourkela sponge iron index stable on firm offers - 19 May

SteelMint's daily sponge iron, CDRI, index is assessed at INR 35,000/tonne (t) (=) exw Rourkela on 19 May 2022.

About 3,550 t of transactions in CDRI were recorded by SteelMint today against 2,600 t on 18 May.

The index remained supported as producers kept prices firm while several deals were reported, resulting in stable prices.

A bunch of deals were reportedly concluded for Patna, with freight charges at around INR 1,800-2,000/t, SteelMint learnt from sources.

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) - Five trades at INR 35,000/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 35,000/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 34,982/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,991/t, rounded to INR 35,000/t exw.

Click for detailed methodology

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