Commodity bourse MCX has registered a trading volume of ₹14.71 crore in its brass futures contract launched on Monday.
The first deliverable non-ferrous futures contract had a volume of 429 tonnes and open interest of 91 tonnes in its debut session that ended at 6 p.m.
The country’s largest commodity exchange offers three contracts ending in April, May and June for trading, with a lot size of one tonne.
The price is quoted ex-warehouse Jamnagar (delivery centre) inclusive of taxes and duties, excluding GST.
Mrugank Paranjape, Managing Director and Chief Executive Officer, MCX, said the contract will lead to the best price discovery for brass, which is of key relevance to its stakeholders including importers, exporters, manufacturers, refiners, and processors among others, who are looking to hedge their price exposure. Brass is an alloy, which primarily contains around 55-60 per cent copper and the rest is zinc, with small amounts of lead and iron.
It finds its use in electrical appliances, marine engines, pump parts, switch gears, sanitary ware, automobiles and defence parts.
Of the 5,000 small and medium units producing brass in the country, about 3,000 are located at Jamnagar, accounting for 80 per cent of the brass produced in India.
The rest of the companies are spread across Moradabad in Uttar Pradesh and Jagadhari in Haryana.