SteelMint: Rourkela sponge iron index falls on weak buying – 25 Mar

SteelMint’s daily sponge iron, CDRI, index is assessed at INR 41,000/tonne (t) (- INR 1,000) exw Rourkela on 25 Mar’22.

About 1,050 t of transactions in CDRI were recorded by SteelMint today as against 1,350 t on 24 Mar.

The index fell owing to weak buying and price correction in semi-finished steel. Hence, buyers held back from taking positions amidst unclear trends, sources informed SteelMint.

Also, market participants believe that active buying might resume after the current fiscal as most market participants are busy settling their books.

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. All the three trades were recorded at INR 41,000/t. The average price of these three transactions was INR 41,000/t and given a 50% weightage in the final price calculation.
• Other Price Indicators – bids/offers/indicative (T2) – Fifteen offers reported in the trading window and considered as T2 inputs. The average price of these fifteen was INR 40,975/t and given a 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela was at INR 40,988/t, rounded to INR 41,000/t exw.

Click for detailed methodology

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