SteelMint: Rourkela sponge iron index remains stable, trades improve - 25 Jul

SteelMint's daily sponge iron, CDRI, index was assessed at INR 34,900/tonne (t) (=) Exw-Rourkela on 25 July, 2022.

About 5,500 t of transactions were recorded today as against 700 t on 23 July.

Although the index remained just about stable, spot trades improved significantly compared to Saturday.

Demand improved with surging semi-finished steel prices across India, which influenced sponge manufacturers to keep their offers firm today, especially in view of the active demand in the market.

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) - Seven trades in the range of INR 34,500-35,300/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 34,958/t which is given a 50% weightage in the final price calculation.
  
  
• Other Price Indicators - bids/offers/indicative (T2) - Ten offers reported in the trading window and considered as T2 inputs. The average price of these ten was INR 34,811/t and given a 50% weightage in the final price calculation.
  
  

The final price for sponge CDRI exw Rourkela was at INR 34,885/t, rounded to INR 34,900/t exw.

Click for detailed methodology

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