SteelMint: Sluggish trends weigh down Rourkela sponge iron index - 24 Nov

SteelMint's daily sponge iron, CDRI, index was assessed at INR 30,550/tonne (t) (- INR 450) exw-Rourkela on 24 November, 2022.

About 700 t of transactions were recorded today as against 2,400 t on 23 November.

With few trades reported today, the index decreased. There was very little buying interest. The market for semi-finished steel saw little buying activity as well. Sources informed SteelMint that spot buying interest is entirely dependent on market participants' needs, and with rising inventories it seems that prices will remain under pressure.

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) - Two trades in the range of INR 30,500-30,600/t was 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 30,571/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 30,575/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 30,548/t, rounded to INR 30,550/t exw.

Click for detailed methodology

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