Leading stock exchange BSE has launched trading in delivery-based futures contract in steel billets, which will provide a risk hedging instrument to stakeholders. The futures contract was designed jointly with SUFI keeping in mind the industry participants needs and participation.
With the introduction of futures in steel billets on BSE, the physical steel supply chain would be in a better position to mitigate price risks and volatility. BSE and SUFI are confident that the stakeholders in the physical steel market will be able to benchmark different steel products they deal against the BSE SUFI steel billets price.
The trading unit will be 10 MT, with base value as Rs per MT. The tick size (minimum price movement) of the contract is Rs 10, while the maximum order size is set at 500 MT, deliverable at Raipur (up to the radius of 50 Km from the municipal limits). In terms of quality specifications, carbon steel billets must be confirm to BIS standard for carbon steel grade A and the billets must be free of harmful elements.