Current Affairs

MCX Launches World’s First Brass Futures Contracts

For the very first time, Multi Commodity Exchange of India (MCX) launched futures trading in brass felicitating brass stakeholder to hedge their price risk.
India's largest commodity exchange MCX will start the future trading in brass on March 26 will offer three contracts ending in April, May and June for trading, with a lot size of one tonne. Significantly, MCX Brass futures is the first non-ferrous contract with a compulsory delivery option.


  • Brass futures will offer the stakeholder a more organised and robust price discovery platform and will help them to use benchmark price of national level. This will enable them to reduce their price risk
  • The price is quoted ex-warehouse Jamnagar (delivery centre) inclusive of taxes and duties, excluding GST.
  • Almost the entire scrap for making brass gets imported into India, but the importers are not sure on the price until the brass shipments lands in the country. With MCX providing price stability, a platform will be given to the market participants and also brass value chain would get a single price to benchmark

Brass Production in Country

  • India produces 100,000-150,000 tonne of brass annually, which includes production through primary metal and recycled brass. India imports huge quantities of brass scrap from the US, the Middle East, Africa and Europe which is then separated and recycled to make brass. It is the largest exporter of finished brass products.
  • Out 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.

Expected Questions

In which of the following commodities has Multi Commodity Exchange of India (MCX) launched futures trading for the first time?
a. Bronze
b. Zinc
c. Brass
d. Nickle

In which of the following states most of the  small and medium units producing brass alloy industry of India is located?
a. Jagadhari
b. Jamnagar
c. Muradabad  
d. None of the above
MCX Launches World’s First Brass Futures Contracts MCX Launches World’s First Brass Futures Contracts Reviewed by Admin on March 23, 2018 Rating: 5

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