Shri Sajjan Jindal launches trading in BSE SUFI Steel Billets futures contract on BSE. BSE, Asia’s oldest stock exchange and world’s fastest exchange with the speed of 6 microseconds, has today announced the launch of trading in delivery-based futures contract in carbon steel billets. The futures contract was designed jointly with SUFI keeping in mind the industry participants needs and participation.
The Rs 111 lakh crore National Infrastructure Pipeline (NIP), the recently announced Rs 20 lakh crore Aatmanirbhar package and production linked incentive scheme (PLI) for specialty steel augers well for the steel sector. In view of this, having a steel futures contract at this point of time has a tremendous utility for producers as well as consumers to manage their price risks.
Shri Sajjan Jindal, Chairman and Managing Director of JSW Group who launched BSE’s steel billets futures contract said “Unlike other commodities, the India’s steel industry lacks a transparent benchmark for setting prices or a way to offset the risk of price movement. 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.”
Commenting on the launch, Shri Ashishkumar Chauhan, MD&CEO, BSE said, “Launch of steel billet futures contract is in alignment of our long-term vision to deepen product offerings and widen commodity derivatives market in India. We strongly believe this contract will provide an effective risk hedging instrument to stakeholders associated with steel business and look forward to a wider participation from stakeholders across the country.”
Commenting on the launch, Shri Nikunj Turakhia, President – SUFI, said The BSE SUFI Steel billets futures prices will serve as a ready reference price to the steel trading community. 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 2830:2012 Standard for Carbon Steel Grade A (With Designation of C15 OR C18 OR C20) and 2831:2012 Standard for Carbon Steel Grade A (With Designation of C8 OR C15 OR C22). The Billets must be free of harmful elements.