NCDEX just rolled out India's first steel scrap futures contract, giving the steel industry a new way to manage price swings.
The contract is based on the globally recognized HMS 80:20 grade and aims to bring more structure and transparency to how steel scrap is traded in India.
Each contract 10 MT cash settled
With each contract covering 10 metric tons and settled in cash, with Ex-Mandi Gobindgarh in Punjab serving as the basis center, excluding GST, this move could make things smoother for everyone from manufacturers to traders.
It's also a step toward greener production methods, since using scrap helps cut down on environmental impact.
Plus, by teaming up with BigMint Technologies, NCDEX hopes to make pricing clearer and help major steel-producing states handle market ups and downs better.