National Commodity & Derivatives Exchange (NCDEX), an online multi-commodity exchange based in India, has finally re-launched its Steel Long contract after lot of barriers owing to government’s notification on implementing BIS for semi finish & finished steel.
NCDEX has finally re-launched its Steel Long futures contract today i.e. 11 Apr, 2014. The contract will be of commercial grade MS Ingot and will have two delivery centers; primary center Wada, Maharashtra along with additional delivery center Raipur, Chhattisgarh.
According to company officials, this contract is similar to the previous one and has named as STEELCOMM (Ex-Wada). Exchange has got clearance from Forward Markets Commissions (FMC) on 24 Mar, 2014.
NCDEX had previously suspended its Steel Long (Ex-Ghaziabad) contract in 2013, when Steel Ministry made BIS (IS: 2831 specification) quality mandate for secondary steel manufacturers, which was later deferred by Steel Ministry after facing strong opposition by the industry. However, the new contract may attract the steel manufacturers’ attention to hedge their risk.
Pursuant to contract specifications, applicable for Steel Long Commercial grade (STEELCOMM) futures contract, the chemical composition is Sulphur upto 0.06% max and Phosphorus upto 0.09% max. The contract will expire on every 20th day of the delivery month.
India’s one of the largest finish steel producing & consuming state Maharashtra, with an installed capacity of 4.2 MnT pa Re-bar, require approx 5 MnT MS Ingot/Billet to produce finished steel, is the major delivery center. The major plants are located in Jalna, Wada & Raigad industrial area. The state also purchases MS Ingot/Billet from Raipur (C.G.), Raigarh (C.G.) and Rourkela (Odisha).