SEBI Registration No - INA000003197 Investment in stock and commodity market are subject to market risk. Please do not trade on those tips which are not provided through SMS.



MCX set to launch world’s first brass futures contract

MCX, the country’s largest commodity exchange, will launch futures trading in brass for first time in the world at an event on March 21, and will go live on trading from March 26.

Brass would be first non-ferrous contract with compulsory delivery options – the IS-319 grade brass ingots and billets can be delivered at Jamnagar in Gujarat.
Initially, three contracts ending in April, May and June will be available for trading, and the lot size would be 1 tonne, valued at ₹3.55 lakh.
Out of the 5,000 small and medium units producing brass, about 3,000 are located at Jamnagar, and they account for 80 per cent of the brass sold in India. The rest of units are spread across Moradabad in Uttar Pradesh and Jagadhari in Haryana.
Small units in Jamnagar imports over 7,500 tonnes of metal scrap monthly from the US, UK and south-east Asia, and process them into ingots and billets. Prices of scrap, known as ‘honey’ in trade parlance, are very volatile depending on supply and demand, and is sold at discount to zinc and copper traded on LME (London Metal Exchange).
Brass, an alloy, usually contains 60 per cent zinc and the rest is copper. It finds varied industrial use in electrical appliance, switch gears, sanitary ware, automobiles and defence sectors. The conversion cost from scrap to billets and ingots varies between ₹14-18 per kg, depending on the efficiency of the plant.
Get more of your favorite news delivered to your inbox >>> Bonaz Capital