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BSE on Friday announced that it has completed one month since launch of SUFI Steel futures contracts on the exchange platform, and has facilitated the delivery to the tune of 90 MT in the first full expiry cycle at the exchange designated delivery centre in Raipur.
Mr Sameer Patil, chief business officer of BSE said “The delivery of 90 MT at the accredited warehouse has demonstrated the effectiveness of the BSE SUFI Steel Billets contracts as a robust risk hedging instrument to stakeholders associated with steel business. The BSE platform offers participants in the steel ecosystem a structured price discovery platform as well as a national level benchmark price, enabling them to mitigate price risk.”
The contract was launched by Mr Sajjan Jindal, chairman and managing director of JSW Group on 22nd July, 2021, who had highlighted the lack of a transparent benchmark for the steel industry. BSE is confident that the successful completion of the delivery process will encourage more participants in the value chain to use the BSE SUFI Steel billets futures contracts going forward.
The BSE had commenced trading in delivery-based futures contracts in ‘BSE SUFI Steel’ with the goal of creating an exchange-traded benchmark for the steel market. The contract is ex-Raipur, which is the base centre. The trading and delivery unit are 10 MT, with a strike price interval of 100. The tick size is Rs. 10.00, which gives traders enough movement for bid and offer prices.