SteelMint: Rourkela sponge iron index rises further despite limited demand – 22 Mar

SteelMint’s daily sponge iron, CDRI, index is assessed at INR 42,800/tonne (t) (+ INR 350) exw Rourkela on 22 Mar’22.

About 600 t of transactions in CDRI were recorded by SteelMint today against 2,810 t on 21 Mar.

The index remained strong, although trades slowed down. Buyers are avoiding bulk buying amid unclear market trends.

Limited demand on uncertain price movements in major locations of the country was witnessed throughout the day.

As a result, buyers opted to wait and watch rather than taking positions, which led to spot trading slowing down today, SteelMint learnt.

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 one trade was recorded at INR 42,900/t, and one deal each at INR 42,800/t, and INR 42,700/t. The average price of these three transactions was INR 42,800/t and given a 50% weightage in the final price calculation.
• Other Price Indicators – bids/offers/indicative (T2) –Sixteen offers reported in the trading window and considered as T2 inputs. The average price of these 16 was INR 42,823/t and given a 50% weightage in the final price calculation.

The final price for sponge CDRI exw Rourkela was at INR 42,812/t, rounded to INR 42,800/t exw.

Click for detailed methodology

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