MCX launches futures trading in Zinc Mini
Multi Commodity Exchange of India Ltd (MCX), on Monday launched its MCX zinc mini futures contract.
By PTI |
MUMBAI: Multi Commodity Exchange of India Ltd (MCX), on Monday launched its MCX zinc mini futures contract.
Initially, June and July contracts of zinc mini will be available for trading and in due course, more contracts will be introduced, a press release issued here stated.
While the contract specification of zinc mini is exactly the same as that of the existing zinc contract on MCX, the tonnage has been reduced to one tonne. The current zinc contract on MCX has a lot size of five tonnes with an average daily volume of 1,40,000 tonnes.
"There is a growing demand from the industry, especially the SME segment, for zinc mini contract which would help them hedge the zinc price risk," the release said.
MCX's Deputy Managing Director, P L Singhal, said "the Zinc mini futures contract is an excellent risk management tool for SMEs, especially those in the galvanising, die casting and brass industry that have a fairly large consumption of zinc."
Zinc has seen a surge in demand from the galvanising industry which uses zinc as a protective coating on steel to prevent corrosion and rusting. With a boom in the steel industry, the zinc market witnessed a bull run during the period 2001-2006.
Initially, June and July contracts of zinc mini will be available for trading and in due course, more contracts will be introduced, a press release issued here stated.
While the contract specification of zinc mini is exactly the same as that of the existing zinc contract on MCX, the tonnage has been reduced to one tonne. The current zinc contract on MCX has a lot size of five tonnes with an average daily volume of 1,40,000 tonnes.
"There is a growing demand from the industry, especially the SME segment, for zinc mini contract which would help them hedge the zinc price risk," the release said.
MCX's Deputy Managing Director, P L Singhal, said "the Zinc mini futures contract is an excellent risk management tool for SMEs, especially those in the galvanising, die casting and brass industry that have a fairly large consumption of zinc."
Zinc has seen a surge in demand from the galvanising industry which uses zinc as a protective coating on steel to prevent corrosion and rusting. With a boom in the steel industry, the zinc market witnessed a bull run during the period 2001-2006.
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