SteelMint: Rourkela sponge iron index edges down on soft demand - 6 Jun

SteelMint's daily sponge iron, CDRI, index was assessed at INR 31,950/tonne (t) (- INR 50) exw Rourkela on 6 June, 2022.

About 1,000 t of transactions in CDRI were recorded by SteelMint today as against 3,520 t on 4 June.

The index fell on account of limited trades as buyers are engaged in need-based procurement to fulfil immediate requirements. Spot buying interest was weak today.

Moreover, uncertain price movement remained a key factor behind dull trade volumes.

Going forward, market participants are waiting for prices to stabilise.

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 31,900-32,100/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 31,967/t which is 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 31,958/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 31,963/t, rounded to INR 31,950/t exw.

Click for detailed methodology

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