logo
 

MCX launches India’s first Copper options

image

MUMBAI (Scrap Register): Multi Commodity Exchange of India Ltd. (MCX) has launched India’s first options contract on copper futures.

At 5:00 pm on Monday, the contract has clocked a traded volume of 461 lots with value of Rs. 21.89 crore.

Currently, June, August and November 2018 option contracts are available for trading, with one MCXcopper futures contract (1 MT) as the underlying. The exercised positions of the options contract postexpiry shall devolve into the respective underlying future positions.

This new options contract providesthe optimal tool to hedge and mitigate price risk in copper for the stakeholders. MCX copper optionsare available to trade from 10:00am-11:30pm/11:55pm on weekdays.

In order to encourage active participation in the market the exchange is not levying any transactionfees on all the commodity options contracts till September 30, 2018.

“This promising start of ourcopper options trading by virtue of its design value adds to the underlying futures and gives copperindustry a greater flexibility with alternative opportunities to take on price risk. We expect that thisnew  tool  will  gain  overtime  from  industry  confidence  and  support  as  a  highly  attractive  hedginginstrument to keep risks of price uncertainty under their control,” said Mrugank Paranjape, MD & CEO, MCX.

“Copper options launched by MCX is a welcome moveas this would help the corporatesto  do  a  better  budgeting  exercise  as  the  premiums  would  be  known.  This will help us to procurematerial at prices that we have envisagedspecially in situations like tender or open orders. The optionscontractswill complement the current futures contracts on the Exchange extremely well,” said Devendra  Surana,  Chairman,  Telangana  State  Council  of  FICCI;  and  MD,Bhagyanagar  IndiaLimited.

Copper ranks as the third-most-consumed industrial metal in the world, after iron and aluminium. Theworld’s refined copper usage has surged in the last few years, owing to the growing demand in sectorslike  electrical  and  electronic  products,  building  construction,  industrial  machinery  and  equipment,transportation equipment, and consumer and general products.

Copper ore production in India stood at 3,846 thousand tonnes in 2016-17. India's consumption demand for refined copper stood at 820 thousand tons in the FY16.

comments powered by Disqus
 
     
Copyright © 2017 ScrapRegister 2017-2022. All rights reserved