The National Commodity & Derivatives Exchange Ltd (NCDEX) will relaunch the Steel Futures contract on Monday, based on a launch issued by the change.
At the beginning, contracts shall be accessible for the months expiring in February 2021, March 2021 and April 2021. With this launch, the primary in 2021, NCDEX has reentered the non-agricultural area increasing the vary of by-product merchandise.
Vijay Kumar, managing director and chief govt officer, stated, “India is on the cusp of an exponential growth in infrastructure sector due to government impetus on making the country a $5 trillion economy in the coming years. As a result, the consumption of steel is likely to take a quantum leap ahead. As price of steel is a major component of total cost in many infra-projects, developers find it difficult to manage the volatility in steel prices in absence of an appropriate hedging platform in the country. The steel contract being launched by us will provide these entities a reliable and transparent risk management tool to hedge against volatile prices.”
The metal contract will commerce lengthy metal merchandise akin to ingots and billets having a buying and selling unit of 10 mt. The base centre shall be Gobindgarh in Punjab whereas Ghaziabad in Uttar Pradesh would be the extra supply centre.
India’s per capita consumption of metal rose at a compounded annual development fee (CAGR) of 4.43 per cent from 46 kg in FY08 to 74.10 kg in FY19. According to the Indian Steel Association, metal demand is estimated to develop 7 per cent in FY20 and FY21.