The National Commodity and Derivatives Exchange (NCDEX) has launched India’s first steel scrap futures contract, giving steel industry participants a way to hedge price swings. The contract is based on the HMS 80:20 grade and is cash-settled.
The launch was reported on 11 November 2026. NCDEX is working with BigMint Technologies, a commodity price reporting agency, under an MoU to provide the price reference for the contract.
What Are the Steel Scrap Futures Contract Details?
The contract is based on HMS 80:20, an internationally recognised grade made of 80% Heavy Melting Scrap Grade 1 and 20% Heavy Melting Scrap Grade 2. Each lot is 10 tonnes, and the maximum order size is 500 tonnes. The basis centre is ex-mandi Gobindgarh in Punjab, with prices excluding GST. Contracts are settled in cash rather than by physical delivery.
Why Does the Steel Industry Need a Scrap Benchmark?
Scrap prices vary by region and grade. NCDEX says the contract offers a market-linked benchmark and an organised way to manage price risk. Reports say it could help manufacturers and traders, and that using scrap supports greener steel production by reducing environmental impact.
What Did NCDEX Say?
NCDEX Managing Director and CEO Vikas Goel said the launch is part of the exchange’s efforts to develop commodity markets, according to a report that paraphrased his remarks.
Market and Trade Reaction
No reaction from steel producers, traders or industry bodies had been reported in the sources reviewed, and no trading volumes were available at the time of writing.
What Happens Next?
Participants can now use the contract to hedge scrap price exposure. The sources reviewed did not give contract expiry months or trading volumes, so these are not covered here.
Frequently Asked Questions
What is the new steel scrap futures contract based on?
It is based on the HMS 80:20 grade, a mix of 80% Heavy Melting Scrap Grade 1 and 20% Grade 2.
What is the lot size of the NCDEX steel scrap futures?
Each trading unit is 10 tonnes, with a maximum order size of 500 tonnes. Contracts are cash-settled.
Who provides the price reference?
BigMint Technologies, a price reporting agency working with NCDEX under an MoU.
Source: NewsBytes and GKToday, 11 November 2026.
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