National Stock Exchange (NSE) has signed a memorandum of understanding with the Steel Users Federation of India (SUFI) to develop steel and other commodity derivatives ecosystem. This price-risk management framework will enable Indian steel players to hedge price volatility through exchange-traded derivatives and will also provide better price discovery, NSE said in a press release on Wednesday.
The framework will be suitable for industry players, including steel manufacturers, processors, infrastructure companies, original equipment manufacturers, and micro, small, and medium enterprises. NSE said it will work with SUFI on product design, market outreach, industry consultations, and capacity building to develop the derivatives products in India.
The partnership comes at a time when India is looking for better tools to manage steel price volatility. While commodity derivatives are widely available in segments such as energy, agricultural products, and bullion, derivatives contracts for steel are relatively underdeveloped in India despite the country being one of the biggest producers in the world.
In FY26, India’s crude steel production had grown almost 11% year-on-year to around 168.4 million tonnes and is projected to reach 300 million tonnes by 2030, according to data from the Ministry of Steel.
