NCDEX launches India's first PRA-based steel scrap futures
12 November 2026 · English Economy & Banking
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Topics: Economy · UPSC Prelims · TNPSC · SSC · Current Affairs
Current affairs of 12 November 2026 (Shanmugam IAS Academy) – explained for UPSC, TNPSC and other competitive exams
News
The National Commodity & Derivatives Exchange (NCDEX) launched India's first steel scrap futures contract based on a price reporting agency (PRA) on 11 Nov 2026. BigMint is the price reference agency. NCDEX named steel clusters in Punjab, Delhi NCR, Rajasthan, Gujarat, Maharashtra, West Bengal, Chhattisgarh, Odisha and Tamil Nadu as likely users.
Key facts for the exam
| Point | Details |
|---|---|
| Grade | HMS 80:20 (80% heavy melting scrap 1 + 20% HMS 2) |
| Trading unit | 10 tonnes (maximum order 500 tonnes) |
| Tick size | ₹10 per tonne |
| Settlement | Cash, against BigMint's HMS 80:20 assessment; basis centre ex-Mandi Gobindgarh, Punjab (prices exclusive of GST) |
| Purpose | Let steelmakers and traders hedge scrap price risk |
Background
- What is a futures contract? An agreement to buy or sell at a fixed price on a future date; it helps producers lock in costs. A PRA publishes independent benchmark prices from market deals.
- Why scrap? India's mini steel plants and induction furnaces melt scrap; scrap-based steel cuts emissions compared with the blast furnace route. The Steel Scrap Recycling Policy came in 2019. NCDEX said domestic scrap generation rose 22% to about 32 million tonnes in FY 2025-26, scrap imports fell 20%, and crude steel output was 168.4 million tonnes (up 10.7%).
- Regulation: the Forward Markets Commission merged with SEBI on 28 Sept 2015; SEBI now regulates commodity exchanges (NCDEX, set up 2003, Mumbai; MCX).
What is this news about?
The National Commodity & Derivatives Exchange (NCDEX) launched India's first steel scrap futures contract based on a price reporting agency (PRA) on 11 Nov 2026. BigMint is the price reference agency.
What are the key facts to remember for the exam?
Grade: HMS 80:20 (80% heavy melting scrap 1 + 20% HMS 2); Trading unit: 10 tonnes (maximum order 500 tonnes); Tick size: ₹10 per tonne; Settlement: Cash, against BigMint's HMS 80:20 assessment; basis centre ex-Mandi Gobindgarh, Punjab (prices exclusive of GST).
What is the background to this news?
What is a futures contract? An agreement to buy or sell at a fixed price on a future date; it helps producers lock in costs.
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Sources: NCDEX press release (ncdex.com, 11 Nov 2026); Manufacturing Today India (12 Nov 2026). Compiled by Shanmugam IAS Academy.
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