NCDEX, the leading commodity exchange has re-launched its Steel Long Contract based on the BIS 2830 grade, as is mandated by the Government of India (GOI). NCDEX is the only exchange which offered Steel Long Futures, which had become a benchmark price reference for the long products segment in the Indian steel industry. The earlier contract was discontinued after the BIS norms were mandated by the Government in September 2012.
The new Steel Long contract launched by the exchange is based on BIS 2830 grade. With the production of Billets and Ingots expected to converge to the BIS 2830 grade in the main and secondary steel sectors, this contract will aid the price discovery and facilitate hedging amongst the entire steel production chain.
Besides, it will also facilitate the migration of the secondary steel sector towards early adoption and production of BIS 2830 grade, thereby aiding in the objective of the GOI. It would also facilitate the physical delivery of steel at exchange approved warehouses.
