ICEX Relocates Exchange Warehousing Facilities

by Shrutee K/DNS

Around 950 MT of MS Ingot/billet, successfully delivered on ICEX platform at Mandi Gobindgarh during February 2020 contract expiry

Average open interest in lots moves up to 1184 in Jan,2020, Average daily turnover to Rs.35.39 cr. 

Mumbai: Acting on market feedback, Indian Commodity Exchange Limited (ICEX), relocated the steel futures contract by shifting  basis centre from Ghaziabad (UP) to Mandi Gobindgarh (Punjab) from January 2020 contract & onwards. Market responded positively and the contract witnessed overwhelming response from market participants with a rise in trading volume, open interest and delivery. Major Steel Producers (Induction Furnaces) from Mandi Gobindgarh deposited and delivered the material at ICEX  warehouse.

The changes in contract have brought about significant participation with healthy rise in Open interest on 28^th January month when it touched 17380 MT (1738 Lots). The daily average turnover also witnessed rise in comparison to previous months.

Month	Average Open Interest in Lots	Average Daily Turnover Rs. Crs
Nov-2019	1096	28.92
Dec-2019	926	32.09
Jan-2020	1184	35.39

Commenting on the development, Mr. Yograj Singla, Director, RP Multimetals Pvt. Ltd. stated “Mandi Gobindgarh said “ICEX Steel Long platform has proved to be a vital tool for the Steel Industry predominantly for SMEs, wherein we can sell and deposit Billets at their warehouse and get better returns as compared to physical markets.”

Another market participant, Mr. Naresh Khandelwal, Rajdhani Iron, Mandi Gobindgarh commented that “Icex steel long contract provides us an opportunity to hedge our price risk on its platform; it also gives the steel participants an opportunity to deposit the material at their warehouses.”

Mr Adhish Singhal, Product in charge of the Steel Long contracts at ICEX stated “The delivery of around 950 MT of MS Billets and Ingots at the newly accredited warehouse of ICEX has once again demonstrated the effectiveness of the ICEX Steel long futures contracts as a reliable price risk hedging tool for steel long products value chain participants. The successful completion of the delivery process will spur more participants in the value chain to use the ICEX Steel Long contracts in the coming days and join the ranks of the participants already using the platform in a good measure. The increased participation is also manifested by way of the record high open interest witnessed in the contracts during the last month.”

About Indian Commodity Exchange: Indian Commodity Exchange Limited (ICEX) is deemed recognized Stock exchange under the SCRA, 1956 in terms of Section 131 (B) of Finance Act, 2015 pursuant to the central Government notification dated August 28, 2015 providing a nation-wide on-line trading platform in commodity derivatives.www.icexindia.com