ICEX sees more physical market players for iron ore contract
MUMBAI: Indian Commodity Exchange (ICEX), which launched world's first iron ore futures (IOF) contract on Saturday, expects more physical market participants using its platform for effective risk management and hedging activities.
The city-based ICEX has established strong connect with the physical market participants such as miners, manufacturers, importers and exporters and they have participated actively in trading, as well as taken lead to develop iron ore contract, officials said.
"In coming days we shall see more physical market participants using ICEX platform for effective risk management and hedging activities. This is possible due to our contract meeting international standards and transparency in price discovery, which is reflective of the present trade in India," ICEX Chief Executive Officer Sanjay Chandel said.
"We are sure the IOF contract, the first of its kind in the world, will benefit the industry at large by giving it a very strong alternative to other products they were using internationally. We feel proud that the thought leadership towards this indigenous product is being appreciated globally," he said.
Iron is the world's most commonly used metal of which iron ore is the key ingredient. 98 per cent of the iron ore extracted is used to make steel. It is used primarily in structural engineering applications, maritime purposes, automobiles, and general industrial applications.
India is world's 3rd largest producer of iron ore. It produced 257 million tonnes of iron ore in 2010 and exported over 115 million tonnes.
The city-based ICEX has established strong connect with the physical market participants such as miners, manufacturers, importers and exporters and they have participated actively in trading, as well as taken lead to develop iron ore contract, officials said.
"In coming days we shall see more physical market participants using ICEX platform for effective risk management and hedging activities. This is possible due to our contract meeting international standards and transparency in price discovery, which is reflective of the present trade in India," ICEX Chief Executive Officer Sanjay Chandel said.
"We are sure the IOF contract, the first of its kind in the world, will benefit the industry at large by giving it a very strong alternative to other products they were using internationally. We feel proud that the thought leadership towards this indigenous product is being appreciated globally," he said.
Iron is the world's most commonly used metal of which iron ore is the key ingredient. 98 per cent of the iron ore extracted is used to make steel. It is used primarily in structural engineering applications, maritime purposes, automobiles, and general industrial applications.
India is world's 3rd largest producer of iron ore. It produced 257 million tonnes of iron ore in 2010 and exported over 115 million tonnes.
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