The initial contracts available for trading will be for expiry dates in July 2005 and August 2005. The basis for trade for Electrolytic Copper Cathode is ex warehouse in Mumbai, exclusive of all taxes. The lot sizes have been kept at 3 MT to benefit even small players in the industry.
“Indian Copper market is approximately Rs. 9000 crores per year and set to grow further as power sector reforms have been initiated. This is the right time for the industry to participate as prices are ruling at nearly all time high”, said Mr Shrikant Subbarayan, Head – Products of NCDEX. He also added that Copper is the second most traded metal in London Metal exchange which sets the benchmark price and said that NCDEX would be expected to do brisk business in copper contracts.
Mr. Sanjay Singhvi, AVP – Products of NCDEX “in the recent past Copper prices internationally have been very volatile and all participants in value chain in India have suffered a lot as a there was no mechanism to mitigate price risk. The much needed requirement of industry to hedge against price risk will be met through the NCDEX contract”. He stated that NCDEX is a national level commodity exchange and that all participants in the market could expect a fair deal.
