New Delhi: Mjunction Services, an e-auction joint venture between Tata Steel and SAIL, has tied up with one of the country’s leading commodity exchanges NCDEX to provide a spot steel price index in the next two months.
“We have collaborated with National Commodity and Derivative Exchange (NCDEX) to start a spot steel price index. We will provide services to run the index on the exchange,” the company’s Managing Director and Chief Executive Officer Viresh Oberoi told PTI.
The company said that it is still building the application for the steel index. Besides steel, it also plans to start a pilot run of coal index on its portal soon.
Mjunction is the largest e-commerce portal in India and offers trading platforms for steel, coal, iron ore, among other commodities, and automobiles.
Oberoi further said, “Unlike commodity exchanges like NCDEX and MCX that offer futures contract in steel, the portal has 100 per cent physical delivery. “On our metal junction, about 6.5 million tons of steel and over 2 million tons of coal is being transacted annually,” he said.
“Steel producers such as Jindal Steel and Lloyd Steel are also using our platform to sell their products. Several other companies are in talks to join us, including some mining companies,” he said.
At present, Tata Steel and SAIL sell steel items on the Mjunction platform.
The company recently tied up with Corus Steel, Tata’s European subsidiary, to create a procurement platform to help the company interact with its suppliers.
Total transaction of all commodities traded on Mjunction platforms increased to Rs 10,400 crore during fiscal year 2007-08, from Rs 95 crore in 2002-03.