Indian Commodity Exchange Limited (ICEX) received 40 MT of billets in the first lot of steel long future contract. SteelMint spoke to Vice President of ICEX Mr. Ramesh Iyer who elaborated telling that “ ICEX received 40 MT of billets in the first lot of steel long future contract.
The billets were deposited at Ghaziabad warehouse on September 19, 2018. On the launching day (28 August), three contracts were made available for trading which are expiring on separate dates. The first future contract is expiring on November 5, 2018 and delivery period for it is between 1 to 5 November followed by the identification of buyer and seller”
Speaking of commodity price difference, Iyer said there are multiple factors which affect the prices of commodity on two dates with a gap of two months.
ICEX’s Sr Manager Mr.Adish Singhal told SteelMint that “since the launch of steel long future contract, we are receiving a really good response from steel industry participants. Within a month we have got 3000 tons of open interest and we are having 10,000 tons average daily turnover which are impressive numbers”.
As per Adish Singhal, “so far nearly 500 ton has been deposited in warehouse which majorly includes billets around 400 tons and ingot 100 ton (approximately). The delivery is expected on the date of expiry of contract (on November 5, 2018) but it is depending on depositor (who deposited this material) whether he wants to do deliveries (through tenders) or rollover it for next month. The decision is completely based on depositor’s discretion”.
“The difference between stock and future prices was approximately INR 1,600. Since it is a compulsory delivery contract, so investors thought of buying it from the physical market and selling it in the future market”, he added.
Indian Commodity Exchange Limited (ICEX) is a commodity derivative online trading platform approved and registered by Securities and Exchange Board of India (SEBI) which provides price risk hedging solution to the trade through innovative contract.
After launching world’s first ever Diamond derivative contracts, ICEX launched steel long futures contract on its nationwide trading platform on 28thAug’18.
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