After trading successfully in many bulk commodities like imported pulses, iron ore, gold and silver, the public sector trading company MMTC Ltd plans to sell pig iron through spot exchanges. This would be for the first time.
The government-run company plans to tie-up with a pig iron producers in Orissa to source the steel-making raw material through National Spot Exchange Ltd, the Financial Technologies-promoted spot commodity trading platform.
Without divulging details of the plan, Asheesh Majumdar, chief general manager of MMTC, said, “The plan is afoot and we are encouraged to handle trade of pig iron ore through NSEL.” Majumdar was talking on the sidelines of Future of Financial Markets, a three-day seminar organised by Financial Technologies. The exchange is currently working on modalities to handle pig iron auctions supplied by MMTC.
“We have successfully handled auctions of imported pulses for sale on behalf of MMTC and fetched much higher than the prevailing market price and are open to handle more commodities,” said Anjani Sinha, MD and CEO of NSEL.
Siraj Hussain, chairman of the Food Corporation of India, however, pointed out that futures and spot markets need to cover the extra mile to create awareness among producers and consumers of commodities, which is currently lacking.
