Indian Commodity Exchange (ICEX) on Thursday stated that the beginning of New Year has witnessed the physical delivery growth of 98 percent on month on month basis on its platform and has brought cheers to the market.
The value of delivery in both Steel Long and Diamond contracts expired on 4th January stood INR 5.2 crore. This is the highest value of delivery at ICEX since the launch of Diamond and Steel Long future contract in August 2017 and August 2018 respectively.
The settlement witnessed smooth delivery of 1230 MT steel Ingots/Billets valuing INR 4.06 crores and 31.34 carats of diamond valuing INR 1.06 crores.
Sanjit Prasad, MD & CEO of ICEX said, “ICEX has made a principled decision to launch compulsory delivery contracts which is a perfect platform and caters the need of all the participants in the ecosystem. Hence, ICEX trading platform provides a good opportunity for hedging the price risk for hedgers as contract expiry exhibits close convergence of the settlement and spot prices.”
In the previous month, December 2018, ICEX registered physical delivery of 590 MT Steel valuing INR 1.99 crore, while the physical delivery of 32.10 carats diamonds valuing INR 60 lakh.
He further added that “since inception, the quantity of delivery upon contract expiry has witnessed upward movement. It signifies credibility and transparency of ICEX contracts and settlement system which has been exhibited through increased participation of commodity stakeholders.”
