The Multi Commodity Exchange of India (MCX) has clocked a total volume of 44,920 tonne (MT) in steel futures, which includes 20,070 MT of long steel and 24,850 MT of flat steel for the July 2004 contract with a turnover of Rs 105.50 crore. | |
| In bullion trading, MCX settled physical delivery of 1,748 kg of silver in May 2004. It registered record turnover of Rs 1,116.73 crore, with a total volume of 1028,700 kg for the May 2004 silver contract. |
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| Jignesh Shah, managing director of MCX said in a press release here yesterday, " MCX has achieved this milestone in a record time, reflecting the exchange's commitment to constantly evolve a perfect commodities market in the country and establish highest liquidity. The key factors which have contributed to this feat in such a short span are the presence of MCX trading terminals in over 120 cities, strategic alliances, strong and robust technology, innovative trading practices and the most optimum operational cost." |
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| Steel futures would help smoothen fluctuations in steel prices. In the last 30 years, steel prices have fluctuated by 100-150 per cent in world markets, from around $160-$200 per tonne for hot rolled (HR) coils two years ago to the current price of around $550 per tonne. |
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| India accounted for 3.3 per cent of the world steel production with around 30 MT, making it vulnerable to international prices. There was also lack of price discovery owing to the prevalence of private deals between integrated plants and major buyers. Fluctuating demand in rural areas and export markets also swayed prices. |
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| The July 2004 contract witnessed participation by private and public sector crude steel producers, integrated steel plants manufacturing finished steel and secondary producers of finished steel and industry products, according to MCX. |
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| Through steel futures, the industry has received benefits like better price discovery and indicative prices for the future. |
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