India’s largest commodities exchange platform, Multi Commodity Exchange of India Limited (MCX) launched world’s first brass futures contracts. It will facilitate brass stakeholders to hedge their price risk. MCX Brass futures will be the first non-ferrous contract with compulsory delivery option. Its price will be quoted as per rate at ex-warehouse Jamnagar (delivery centre) inclusive of taxes and duties.
- Brass futures will offer the stakeholder a more organised and robust price discovery platform and will help them to use benchmark price of national level. This will enable them to reduce their price risk
- The price is quoted ex-warehouse Jamnagar (delivery centre) inclusive of taxes and duties, excluding GST.
- Almost the entire scrap for making brass gets imported into India, but the importers are not sure on the price until the brass shipments lands in the country. With MCX providing price stability, a platform will be given to the market participants and also brass value chain would get a single price to benchmark
- India produces 100,000-150,000 tonne of brass annually, which includes production through primary metal and recycled brass. India imports huge quantities of brass scrap from the US, the Middle East, Africa and Europe which is then separated and recycled to make brass. It is the largest exporter of finished brass products.