BSE, formerly known as the Bombay Stock Exchange, has announced that it is preparing for the launch steel futures in the near future, starting from the futures trading of steel billet, though the timeline has not been specified yet.
The Steel Users Federation of India signed a memorandum of understanding with BSE in August 2019 to support the launch of steel futures.
The maximum order size for the steel billet futures trade will be 500 mt of billets, with a trading unit of 10 mt. The quality of billets must conform to BIS 2830:2012 Standard for carbon steel grade A. The size of billet has been set at 100 mm, but billets of 120 mm, 130 mm and 150 mm sizes are also deliverable.
As India has become one of the major players in the global steel export market, the launch of steel futures will help companies to hedge risks, according to BSE.
