SteelMint: Rourkela sponge iron index falls INR 450/t on limited trades - 31 May

SteelMint's daily sponge iron, CDRI, index is assessed at INR 32,200/tonne (t) (- INR 450) exw Rourkela on 31 May'22.

About 1,005 t of transactions in CDRI were recorded by SteelMint today as against 5,100 t on 30 May.

The index dropped further following a price correction in the northern region. A significant decline in steel prices in Punjab turned market sentiments sluggish, resulting in limited enquiries and a fall in offers in today's trade.

Thus, spot trades and prices of sponge iron moved down sharply amid low buying interest.

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) - Four trades in the range of INR 32,200-32,500/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 32,377/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Fourteen offers reported in the trading window and considered as T2 inputs. The average price of these fourteen was INR 32,056/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 32,217/t, rounded to INR 32,200/t exw.

Click for detailed methodology

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