Commodities

MCX handles record base metal delivery over 2 years

Our Bureau Mumbai | Updated on September 21, 2020 Published on September 21, 2020

PS Reddy, Managing Director, MCX   -  x

MCX, the country’s largest commodity derivatives exchange, has logged 106,814 tonnes in the five base metal contracts — aluminium, copper, lead, nickel and zinc — which were converted into compulsory delivery contracts in a phased manner since the beginning of last year.

Ever since last January, overall deliveries of aluminium accounted for 30,771 tonnes, copper 24,852 tonnes, lead 10,517 tonnes, nickel 3,646 tonnes and zinc 37,027 tonnes, respectively, after completion of their August contract delivery cycle. Significantly, nickel witnessed highest-ever delivery of 999 tonnes in August expiry.

MCX has also started the process of empanelment of domestic refined Lead brands to encourage more domestic consumers and refiners to participate on the platform. the exchange has issued eligibility criteria for domestically refined lead brands to get registered for MCX good delivery. At present, only LME approved brands are accepted.

Also read: MCX-Zinc remains in consolidation phase

PS Reddy, MD & CEO, MCX, said the market has accepted to the change of all base metal contracts into deliverable contracts within a short time.

The exchange remain keen to explore different aspects of contracts to increase our relevance to domestic metal industry, he said.

During August, on an average, daily 124,638 tonnes of metals valued at ₹7,270 crore traded on the exchange.

At present, trading/delivery lot for metals are: aluminium – 5 tonnes, copper - 2.5 tonnes, lead – 5 tonnes, nickel – 1.5 tonnes and zinc – 5 tonnes. MCX has designated warehouses at Bhiwandi and Chennai for metal delivery.

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Published on September 21, 2020
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