National Commodity & Derivatives Exchange Limited (NCDEX), the first commodity exchange amongst the global commodity futures exchanges, is reported to have a successful steel futures contract. The average daily traded volumes are in the range of 20, 000 MT vis-à-vis the last 4 years corresponding figure of 9,000 MT.


NCDEX launched its steel futures contracts on March 5, 2005. Ever since then, it has been able to attract secondary steel sector value chain participants such as the Mild Steel (MS) Ingot/Billet manufacturers, sponge iron producers, re-rolling mills, steel consumers and traders. The active participation by these value chain participants has resulted in the NCDEX steel futures contracts gaining ground over the last five years since its launch.

The efforts of the NCDEX are beginning to see traction in terms of the three vital parameters – traded volumes, open interest and deliveries. The open interest of all the steel long contracts is now over 1, 00,000 MT vis-à-vis the open interest at 20,000 MT during Jan 2009. Similarly the physical stocks of MS Ingots and Billets at all the accredited warehouses stand at 65, 500 MT vis-à-vis 10,000 MT a year ago.


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