Ncdex to roll out sponge iron futures in a week

To launch futures in perishable commodities in two months

National Commodity and Derivatives Exchange (Ncdex) will launch futures contract in sponge iron in a week.

Confirming this, Narendra Gupta, chief business officer, Ncdex, said, "Contracts in non-ferrous metals such as aluminium, zinc and nickel will be launched within a fortnight. Hot-rolled coil trade will begin in a month."

"Ncdex will launch futures contract in perishable commodities (onion and potato) in two months. Storage of perishable commodities will create a problem in futures trade, and Ncdex is aware of this," he said, speaking on the sidelines of signing of a memorandum of understanding (MoU) with Dalian Commodity Exchange (DCE) of China.

On the delay in the launch of futures contact in natural gas, Gupta said, "The exchange has prepared software and structure for the contract, and the decision from the partner Gas Authority of India (GAIL) is being awaited."

He added that BPCL is partnering Ncdex in crude trade and is likely to participate in natural gas too.

The MoU is for cooperation in the areas of information sharing and knowledge management. Both exchanges have agreed to conduct market development in energy and metal contracts.

Gupta said the exchanges would work together for development of common product that could be traded on both the exchanges.

DCE vice-president Xiaoli Guo said DCE is currently trading in agri-based commodities and would also launch futures contract in financial and industrial products.

DCE currently trades in five futures contracts in soybean and corn, while Ncdex trades in contracts of 44 commodities.

"Like in India, soybean consumption is growing in China. In 2005, China produced 18 million tonne (mt) soybean but imported 24 mt. This year, production is expected to be slightly above the last year's. So, imports will go up to 27 mt," he said. China imported 8 mt of edible oil last year.