India Steel market Watch
October 30: Indian traders are increasingly participating in the London Metal Exchange (LME) for futures market trading in steel and iron ore products.
Indian commodities exchanges also offering opportunities to trade in these items but the trade execution has been almost nil for several months.
Iron ore is a listed commodity on the Multi Commodity Exchange of India Ltd (MCX) whereas “steel long commercial” and “steel” are listed on the National Commodity and Derivatives Exchange Ltd (NCDEX).
But the volume of transaction is insignificant or nil, according to Nilanjan Ghosh, former Head, Research & Strategy, NCDEX.
“Indian traders are more interested in going for forward contracts with sellers rather than coming to the derivatives market. Many traders are participating on LME, where the volume of transaction is huge,” Ghosh said.
The LME is also cashing in on the trend and taking initiatives to develop more business in India.
The LME, on its official website, published that the bourse is broadening its market outreach efforts in India amidst growing interest in commodities trading in the region.
In this regard, it hosted a series of seminars and meetings in New Delhi and Mumbai from September 7 to 11.
Garry Jones, Chief Executive, LME, admitted: “The LME has always had a strong relationship with the metals industry in India, which is a top-priority region for us.”
The exchange’s officials came to India to meet prospective participants and to make them more familiar with metals price risk-management tools. The seminar was fully booked and more than 700 people registered.