India Commodity Exchange (ICEX), founded by Indiabulls Financial Services and the state-run MMTC (Minerals and Metals Trading Corporation of India), plans to start iron-ore futures, making it the country’s first bourse to allow trading in the steel-making raw material.

“Going forward, we would add many more contracts that are unique or new to the market,” Chief Executive Officer Sanjay Chandel said in Mumbai yesterday. “Iron-ore is one which we are working on very seriously,” he added.

Also Read   Related Stories News Now - Commodity futures turnover up 74% - Govt may cut import duty on raw gold to help MMTC refinery - Iffco, RCF may set up national commodity bourse - Futures turnover up 30% - Commexes' turnover jumps by 50% during Apr-Feb FY10 - FMC allows ICEX to levy flat transaction fee till May

Also Read   Related Stories News Now - Markets open on a soft note - Oil dips on hopes of easing Iran tensions - Tata Power plunges on disappointing Q4 nos - Rupee hits new low, near key 56-level - Wall Street ends flat after late volatility More

“The planned futures will be used by miners, traders and users—the whole value chain we want to get in,” Chandel said. “We did it primarily because our partner is one of the largest traders and they have a very good connect with the physical market in iron ore in India.”

MMTC is the country’s largest iron-ore supplier, handling about 15 per cent of the nation’s exports of the raw material, according to its website.

BHP Billiton—the world’s largest mining company—and Vale SA, this year broke a 40-year custom of setting iron-ore prices with steel-makers annually by signing quarterly contracts.

According to its website, the India Commodity Exchange wants to add new contracts to the 17 commodities currently on offer. Average daily turnover may advance to at least Rs 4,000-5,000 crore by the year ending March 31, 2011, from about Rs 2,000 now, Chandel said.

“We expect to grow from those contracts rather than running after turnover for the time being,” he said. Trading in iron-ore futures is subject to approval and will begin two months after the Forward Markets Commission (FMC)—the industry regulator—approves the product, Chandel said.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets open on a soft note - Oil dips on hopes of easing Iran tensions - Tata Power plunges on disappointing Q4 nos - Rupee hits new low, near key 56-level - Wall Street ends flat after late volatility

Tags : ICEX | launch iron ore futures | Indiabulls Financial Services | MMTC | Sanjay Chandel | Multi Commodity Exchange of India | FMC |   Read Business news in  Advertisements -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  The Best Seller is Also the No. 1 in Mileage. Click here -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More