The Hindu Business Line

MCX settles first aluminium physical-delivery contract


Multi Commodity Exchange executed delivery of 10 tonnes (2 lots) of aluminium under the first compulsory delivery futures contract on Tuesday.

The delivery was given by Indu Corporatio­n, through IIFL Wealth Management, while the buyer was Phoenix Industries via Motilal Oswal Financial Services.

The LME-approved 99.97 per cent purity ingot was delivered at the MCX approved warehouse at Bhiwandi, Thane district. The delivery was effected through MCX Clearing Corporatio­n’s Electronic Commodity Receipts Informatio­n System, ComRIS. On January 3, MCX launched the first domestical­ly benchmarke­d, compulsory deliverabl­e aluminium futures contract of 5 tonnes to be settled on polled domestic spot prices from market participan­ts. MCX rupee-quoted contracts augur well for hedging currency risks and commodity price volatility driven by both internatio­nal and domestic factors. Mrugank Paranjape, Managing Director, MCX, said the seamless delivery through the exchange mechanism will help further integrate physical and derivative­s markets, enabling the emergence of a stronger market-based facility for risk management and price discovery in the Indian metals market.

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