ICEX witnesses 590 tons steel delivery in December contract
The ICEX steel long futures contract launched on August 28, 2018 at its platform successfully concluded the settlement process of its second expiry on December 5, 2018. The settlement witnessed deliveries of 590 MT of the underlying deliverables at the ICEX accredited warehouse at Ghaziabad.
ICEX steel long futures contracts have seen a deposit of 720 MT at its Ghaziabad accredited warehouse since launch. The contracts have been witnessing higher participation in terms of traded quantity and rising open interest. The contracts have also witnessed the traded prices correlating very highly with the daily spot prices of the corresponding underlying product at key locations across India.
MD & CEO, ICEX, Mr Sanjit Prasad said “The ICEX steel long contracts have witnessed increased participation within a short period of time since its launch, on account of the continued volatility seen in the steel spot prices. The rise in the open interest witnessed in the contracts in the last 3 months does signify the value addition that these contracts are providing to the participants in their business operations. The very high correlation of the ICEX contract prices with the underlying steel long product spot prices, that we have witnessed since launch, will encourage increased participation from across the country in the upcoming months. The successful settlement of the 2nd expiry of the contract that was due on December 5, 2018 by way of deliveries of 590 MT only strengthens the credibility of the prices traded on the ICEX platform.”
The contract expiries in November and December 2018 had also witnessed the close convergence of the traded prices with the spot prices at Ghaziabad closer to the respective expiries.
ICEX Steel long contracts are the only metal (ferrous and non-ferrous) derivative contracts in the Indian commodity derivatives ecosystem, based on the compulsory delivery mode of settlement.