SteelMint: Rourkela sponge iron index stable, trades gather momentum - 2 Jun

SteelMint's daily sponge iron, CDRI, index is assessed at INR 31,900/tonne (t) (=) exw Rourkela on 2 Jun'22.

About 5,920 t of transactions in CDRI were recorded by SteelMint today as against 4,250 t on 1 Jun.

The index stayed firm although demand remained limited during the first half. However, in the late trading hours demand improved, which led to a surge in offers, SteelMint notes.

Buyers started to take positions on the assumption that there is limited scope of a major fall in sponge prices. This, in turn, led to gains in spot trade volumes.

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) - Fourteen trades in the range of INR 31,700-32,500/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 31,909/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Six offers reported in the trading window and considered as T2 inputs. The average price of these six was INR 31,870/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,890/t, rounded to INR 31,900/t exw.

Click for detailed methodology

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