India’s MCX to start futures trading in Brass for the first time
MUMBAI (Scrap Register): MCX, the leading exchange for non-agri commodity derivatives, is for the first time in the world planning futures contract in brass.
MCX will launch futures trading in Brass at an event on March 21, and will go live on trading from March 26.
Brass would be first non-ferrous contract with compulsory delivery options the IS-319 grade brass ingots and billets can be delivered at Jamnagar in Gujarat.
Out of the 5,000 small and medium units producing Brass, about 3,000 are located at Jamnagar, and they account for 80 per cent of the brass sold in India. The rest of units are spread across Moradabad in Uttar Pradesh and Jagadhari in Haryana.
Small units in Jamnagar imports over 7,500 tonnes of metal scrap monthly from the US, UK and south-east Asia, and process them into ingots and billets. Prices of scrap, known as ‘honey’ in trade parlance, are very volatile depending on supply and demand, and is sold at discount to Snc and Copper traded on LME.