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Type of contract
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Futures Contract
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Name of Commodity
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Steel Long
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Ticker symbol
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STEELLONG
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Trading System
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NCDEX Trading System
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Basis
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Ex-Warehouse Ghaziabad, exclusive of all taxes and duties
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Unit of trading
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10 MT
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Delivery unit
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10 MT
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Quotation/base value
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Rs. Per MT
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Tick size
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Rs. 10/- per MT
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Quality specification
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Mild Steel Ingot/Steel Long
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Size
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3 1/2 * 4 1/2 inch
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Carbon content
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upto 0.3 % max
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Manganese
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min 0.4 %
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Sulphur
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upto 0.06% max
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Phosphorus
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upto 0.09% max
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Sulphur + Phosphorous
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upto 0.14% max
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Weight
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min of 90 Kgs per ingot
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Length
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min of 48 inches per ingot
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Ingots without harmful and appreciable hollowness, piping and rising.
Ingots must have reasonably plain surface.
Heat number to be mentioned on each ingot.
Ingots must be free of harmful refractories.
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Additional deliverable grade
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1)Mild Steel Ingots
All other parameters exactly as per the quality specification mentioned
above.
2) Mild Steel Billets
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Size
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100*100 to 130*130 mm
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Length
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6m +/- 200mm
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Billets to be free from open and harmful surface defects.
Billets should be suitable for re rolling.
Heat number to be mentioned on each billet.
Mill Test certificate to accompany for each heat.
Chemistry to be the same as mentioned in the quality specifications for
MS Ingot.
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Quantity variation
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+/- 3% or 5 MT, whichever is lower
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Delivery center
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Ghaziabad (within 50 kms of the municipal limits of
Ghaziabad)
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Additional delivery centres
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Mandi Gobindgarh, Raipur, Mumbai, Chennai, Jharsuguda,
Durgapur, Jaipur (within 50 kms from the municipal limits of the
additional delivery centres)
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Trading hours
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As per directions of the Forward Markets Commission from
time to time, currently-
Monday through Friday: 10:00 AM to 11:30
PM
Saturday: 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice
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No. of active contracts
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As per launch calendar below
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Opening of Contracts
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Trading in any contract month will open on the 10th day of
the month. If the opening day happens to be a non-trading day, contracts
would open on the next trading day.
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Tender Period
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Tender Date : T
Tender Period:
Tender period would be of 14 Calendar days during trading hours prior to
the expiry date of the contract. Pay-in and Pay-out: on a T+2 basis. If
the tender date is T then,
pay-in and pay-out would happen on T + 2 day.
If such a T + 2 day happens to be a Saturday, a Sunday or a holiday at
the Exchange, clearing banks or any of the service providers, Pay-in and
Pay-out would be effected on the next working day.
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Due Date/ Expiry Date
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Expiry date of the contract:
20th day of the delivery month. If 20th happens to be a holiday or
non-trading day, a Saturday or a Sunday then the due date shall be the
immediately preceding trading day of the Exchange.
The settlement of contract would be by a early delivery system of a
maximum of 15 Pay-ins and Pay-outs or less including the last Pay-in and
Pay-out which would be the Final Settlement of the contract.
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Delivery Specification
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During the period from E-14 to E-1, Seller & Buyer
having open position are required to give their intention/notice to
deliver to the extent of his open position. The delivery position would
be arrived at by the exchange based on the information to give/take
delivery furnished by the seller and buyer as per the process put in
place by the exchange for effecting physical delivery. If the intention
of the buyers/sellers match, then the respective positions would be
closed out by physical deliveries. If there is no delivery intention
matching between sellers and buyers, then such intentions will get
automatically extinguished at close of E-1 day. Intentions can be
withdrawn during the course of E-14 to E-1 day if they remain unmatched.
Upon expiry (i.e E) of the contracts all the outstanding open positions
should result in compulsory delivery.
The penalty structure for failure to meet delivery obligations will be as
per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008 as
modified from time to time.
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Closing of contract
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Clearing and Settlement of contracts will commence with the
commencement of Tender Period by delivery through intention matching
arrived at by the exchange based on the information furnished by the
seller and buyer respectively as per the process put in place by the
exchange for effecting physical delivery during the period from E-14 to
E-1 prior to expiry. Upon the expiry of the contract all the outstanding
open position should result in compulsory delivery
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Price band
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Daily price fluctuation limit is (+/-) 4%. If the trade hits
the prescribed daily price limit there will be a cooling off period for 15
minutes. Trade will be allowed during this cooling off period within the
price band. Thereafter the price band would be raised by another 50% of
the existing limit i.e. (+/-) 2%. If the price hits the revised price
band (6%) again during the day, trade will only be allowed within the
revised price band. No trade/order shall be permitted during the day
beyond the revised limit of (+/-) 6%.
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Position limits
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Memberwise: 1,00,000 MT, or 20% of the market wide open
interest whichever is higher.
Clientwise: 25,000 MT.
(For hedge limits refer circular no. NCDEX/TRADING-100/2005/219 dated
October 20, 2005)
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Special margins
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Special margin of 4% of the value of the contract will be
levied whenever the rise or fall in price exceeds 20% of the 90 days prior
settlement price. The margin will be payable by buyer or seller depending
on whether price rises or falls respectively. The margins shall stay in
force so long as price stays beyond the 20% limit and will be withdrawn
as soon as the price is within the 20% band.
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Location Premium/Discount
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Location Premium/Discount would be announced before launch
of contracts.
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STEEL LONG
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Base Grade
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Additional Grade
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P/D Applicable to additional grade
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Mild Steel Ingots
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Mild Steel Ingots
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No Premium/ Discount
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Mild Steel Billets
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Premium: Rs. 700 per MT
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The grade premium/discounts would be in addition to the applicable
location premium/discounts.
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Delivery Logic
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Compulsory Delivery
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Final Settlement Price
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The Final Settlement Price shall be the last spot price of
the day as polled by the Exchange on the last trading day of the
contract.
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