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Multi Commodity Exchange of India (MCX), today received permission from the commodity markets regulator - Forward Markets Commission (FMC), to launch iron ore futures contract.
MCX will commence trading iron ore futures contract from tomorrow, making it India’s first commodity exchange to launch the contract, a press release issued here stated.
MCX’s iron ore contract is designed to be the true benchmark of Indian iron ore fines export market, the release said.
Iron ore is one of the most important commodities in the world today with increased demand being witnessed from steel mills. The MCX iron ore futures contract will give all market participants an opportunity to hedge their price risks against the volatility of the physical market.
MCX’s Managing Director & CEO, Mr Lamon Rutten, said, “India is the world’s third-largest iron ore supplier and plays a significant role in the global iron ore industry. MCX’s iron ore futures contract will go a long way in creating a market-driven benchmark for the entire industry and also for those nations importing iron ore from India, mainly China, which is the world’s largest importer.”
With a quality of 62 per cent Fe content fines, the MCX iron ore futures contract has a trading unit of 100 DMT and tick size of Re 1 per DMT.
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