Leading commodity bourse MCX today commenced trading in the world's first brass futures contracts and generated a volume of Rs 14.71 crore on the opening day.
The brass contracts witnessed a trade volume of 429 tonnes and open interest of 91 tonnes till evening, while trading takes place till 1155 hours.
Three contracts ending in April, May, June, and July 2018 are available for trading. The price is quoted ex-warehouse Jamnagar inclusive of taxes and duties, excluding GST.
"MCX Brass futures contract debuts with Rs 14.71 crore volumes," MCX said in a statement.
Brass futures aims to provide maximum price transparency and equal access to all market participants. It would improve the price discovery process and provide a price discovery platform as well as a hedging tool to the brass industry.
Commenting on the development, MCX Managing Director and CEO Mrugank Paranjape said: "We are very encouraged by the first day trading volume.
"The contract specifications and deliverable grade of Brass is such that it would help the entire value chain of brass industry...," he said.
Metals Recycling Association of India (MRAI) President Sanjay Mehta said: "The brass industry in India always wanted a price benchmark for the industry. The brass futures debut on MCX today will provide the brass industry not only a robust price discovery platform but also an excellent tool to hedge their price risk.
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