SteelMint: Rourkela sponge iron index stable on limited trades - 24 Mar

SteelMint's daily sponge iron, CDRI, index is assessed at INR 42,000/tonne (t) (=) exw Rourkela on 24 Mar'22.

About 1,350 t of transactions in CDRI were recorded by SteelMint today against 2,700 t on 23 Mar.

The index remained stable on limited trades over the past couple of days. There was lack of confidence among market participants about price movements. Thus, spot trades continued to remain low.

Buyers are booking material as per requirements as price volatility continues, 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) - Three trades were recorded in the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which two trades were recorded at INR 42,000/t, and one deal at INR 42,050/t. The average price of these three transactions was INR 42,012/t and given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) -Seventeen offers reported in the trading window and considered as T2 inputs. The average price of these 17 was INR 42,025/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 42,019/t, rounded to INR 42,000/t exw.

Click for detailed methodology

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