NCDEX to amend the Steel Long contract beginning Aug'13 month (tentatively 1st week). Contract will add delivery warehouse model in which material delivery will be arranged from authorized NCDEX warehouse. Earlier contract has a provision to deliver the material from seller to buyer centre, now onward steel long contract delivery will made to authorised warehouse.
As per the sources contract will also add Kolkatta, Jaipur, and Hyderabad to its existing delivery center of Mandi, Raipur, Mumbai, and Gaziabad. Its also being learned the staggered delivery date has been shifted to 11th date of every month as per earlier 5th date of every month. Staggered delivery will ensure more hedging in the contract as cutoff position and delivery decision date is being extended.
Market sources believe that NCDEX will give direction to secondary steel trading by its benchmark prices and will provide hedging tool. Along with MCX Steel long contract that is based in Raipur (C.G). However both the contract trade BIS material that is presently not being traded in volume.
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