Dubai comex may start steel futures

Dubai Gold and Commodity Exchange (DGCX) is planning to launch energy and steel futures by the year-end, said Framroze Pochara, chief executive officer. He was talking at the sidelines of the 3rd India International Gold Convention, 2006, held in Mumbai last week.

If the plan succeeds, DGCX will be one of the few exchanges in the world to offer futures in steel. The London Metal Exchange has been postponing the launch of steel futures because of absence of unanimous quality specification charted out by the industry and various countries.

LME has asked its members and affiliated organisations in the European countries to study the possibility of a uniform variety of steel on which a consensus may be arrived at. After the study is over next year, the LME will decided on the launch of steel futures, sources said.

Indian commodity exchanges MCX and NCDEX have been offering steel futures and they are doing well.

The Dubai exchange was also studying trends in gasoline, which would be offered for trade probably early next year, Framroze added.

The exchange will also start futures in non-ferrous metals and agri commodities.

"The studies on agri commodities and non ferrous metals are in preliminary stage and would be completed next year only," Framroze said and added that DGCX would offer pulses first in agri commodities.

At present, the DGCX is offering futures on gold, silver and three major currencies including euro-dollar, pound sterling-dollar and yen-dollar.