MCX, the country’s largest commodity exchange, had processed first set of delivery of domestically-processed lead on its futures contract.
Earlier, the exchange had issued comprehensive MCX Good Delivery Norms for Refined Lead BIS Standard Grade 4 and paved the way for domestic Refined Lead Producer to be accepted as good delivery on the exchange platform. Prior to this, only LME approved brands of Refined Lead were deliverable on the exchange platform.
Currently, two domestic refined lead production plants of Pilot Industries at Bhiwadi, Rajasthan and Gravita India at Chittoor, Andhra Pradesh, are empanelled as MCX good delivery for Lead futures contracts.
In March settlement cycle, MCX saw delivery of 968 tonnes of empanelled brand ingots against the Lead Futures. Notably, the March expiry marks the first delivery cycle for domestically produced refined Lead from MCX empanelled domestic refiners.
Helping organised trade
PS Reddy, Managing Director, MCX, said the move helps in development of organised domestic Refined Lead trade and minimises price disparities across the country. It also strengthens the linkages between exchange eco-system and the domestic industry and makes locally produced metal available easily.
MCX has witnessed a total delivery of over 26,700 tonnes of the metal since the conversion of Lead to compulsory delivery settlement mode since June 2019.