Steel rebar futures have been approved for release by SEBI on MCX, the nation’s biggest commodity exchange. The exchange stated that the launch date for the contracts would be disclosed separately. The trading unit will have a base value of one tonne and be 5 tonnes. The tick size will be $10 per tonne, and the maximum order size is 200 tonnes, according to the exchange.
The pricing quote (excluding of GST) will be ex-warehouse in the Chhattisgarh district of Raipur. The daily price cap is set at 4%, but once it is achieved, it will be lowered to 6% without a cooling-off time. The daily price cap will be relaxed to 9% after the 6% restriction is exceeded, followed by a 15-minute cooling-off period.
Prices may be further relaxed in increments of 3% if price movement in overseas markets exceeds the maximum daily price restriction (of 9%). It will have an initial margin of 8%. The maximum individual client open position for all Steel Rebar futures has been set at 1.20 lakh tonnes or 5% of the market-wide open position, whichever is higher.
