MCX launches rubber futures
16 Aug 2018
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The Multi Commodity Exchange of India (MCX) will be launching rubber futures from today (16 August) offering a hedging opportunity across the entire value chain for the rubber industry.
An official statement issued by MCX said it will offer four futures contracts in rubber with each ending September, October, November and December, respectively.
Investors can trade in the ‘Ribbed Smoked Sheets 4 (RSS4)’ quality rubber for a minimum lot size of one tonne with compulsory delivery option, it said. The rate to be quoted will be for 100 kg ex-Kochi, exclusive of all sales/GST, it said.
Commenting on the new product, MCX CEO and managing director Mrugank Paranjape said India is one of the major consumers and producers of natural rubber. “With the launch of this new contract, we expect to provide transparent and fair benchmark prices that closely reflect supply and demand fundamentals in physical rubber market,” he said.
MCX said that India is the sixth largest producer and second largest consumer of natural rubber in the world. Owing to its unique qualities, when compared with the elastomers and synthetic rubber, Indian natural rubber is the preferred raw material for the industry.
Rubber caters to a spectrum of industries such as automobile, aeronautics, electrical and electronics, materials handling, health care, power transmission, etc. Rubber output in India stood at 6.94 lakh tonnes in 2017-18, while the consumption was 11.12 lakh tonnes, it noted.
