Multi Commodity Exchange of India (MCX) has announced the launch of Brass futures contract at an event organized at Jamnagar in Gujarat. The exchange will commence futures trading in brass on March 26, 2018, marking the first time that a Brass Futures contract will be traded on an organized exchange anywhere in the world. Three contracts ending in April, May and June 2018 will be available for trading. The lot size of the contract is 1 MT (metric tonne).
As there is no reference-able international or domestic benchmark for brass price currently, this contract will facilitate brass stakeholders to hedge their price risk. Brass futures will not only provide its stakeholders with a more organized and robust price discovery platform, but will also help them to use a national level benchmark price as a ready reference to enable them to mitigate their price risk.
MCX Brass futures will be the first non-ferrous contract with compulsory delivery option. The price is quoted ex-warehouse Jamnagar (basis centre) inclusive of taxes and duties, excluding GST. The ingots and billets are of IS-319 grade.