The contract uses HMS 80:20, an internationally recognised grade comprising 80% Heavy Melting Scrap Grade 1 and 20% Heavy Melting Scrap Grade 2.
Commodity-focused exchange NCDEX has launched futures trading in steel scrap, the first-ever Price Reporting Agency-based futures contract in the steel scrap segment.
It addresses the need for a credible market-linked benchmark and an organised hedging mechanism in a market characterised by diverse scrap grades and fragmented pricing references.
The contract uses HMS 80:20, an internationally recognised grade comprising 80 per cent Heavy Melting Scrap Grade 1 and 20 per cent Heavy Melting Scrap Grade 2.
It is among the most widely referenced scrap grades in international markets and serves as a benchmark import grade across Asian markets.
The launch follows the recent signing of an MoU between NCDEX and BigMint Technologies, one of leading commodity market intelligence and price reporting agencies. BigMint will be playing the role of a price reference agency.
The cash settled contract will have trading unit of 10 tonne with maximum order size of 500 tonne. The tick size will be ₹10 per tonne and basis centre will be ex-mandi Gobindgarh, Punjab.
Vikas Goel, MD and CEO, NCDEX, said the introduction of first-ever PRA-based futures contract in steel scrap underlines the exchange’s commitment to market innovation, expanding participation and creating meaningful solutions that contribute to the development of commodity markets.
With domestic scrap generation increasing to 22 per cent year-on-year to 32 million tonne, and consequent decline of 20 per cent in ferrous scrap imports, the segment remains central to country’s steel value chain.
Kedar Deshpande, Chief Business officer, NCDEX, said domestic steel scrap market is fragmented with prices varying with region and grade.
The new futures contract seeks to address this need by bringing greater transparency to price discovery and providing market participants with an organised avenue to hedge price risk, he said.
Published on November 11, 2026
