ICEX plans iron ore futures contract: Official_Industry News

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ICEX plans iron ore futures contract: Official

作者：25 发布时间：2010-06-09 文字大小：【大】【中】【小】

Indian Commodity Exchange Ltd (ICEX), the country's third biggest commodity bourse by turn overaims to launch the country's first iron ore contract in a few months, a top official told Reuters.

"We are working on a iron ore contract...talking to different stakeholders including the regulator," said Sanjay Chandel, chief executive of the bourse on Tuesday.

ICEX, whose owners include Indiabulls Financial Services Ltd. and MMTC Ltd., offers contracts primarily in metals and energy.

MMTC is India's largest iron ore supplier, handling about 15% of total exports. The company is also the single largest trader of metals and a large importer and trader of coal.

"Even if we decide on the contract and get approved by Forward Markets Commission (FMC), we will need about two months to launch," he said, adding that the exchange is still at a preliminary stage.

FMC regulates Indian commodity futures market which traded contracts worth Rs 77.65 trillion (USD 1.65 trillion) in the 2009/10 fiscal year ending March.

India, the world's third biggest exporter, shipped about 106 million tonnes of iron ore last year and most of it landed in China that houses the largest steel industry in the world.

But, analysts are wary. Indian iron ore has various qualities and getting a standard specification is difficult, they said.

"It will be a redundant contract as it would face difficulty in garnering liquidity in absence of an internationally traded contract," said Gnanasekar Thiagarajan, director, Commtrendz Research in Mumbai.

Sourced from www.moneycontrol.com