NSE Signs MoU With Steel Users Federation Of India To Strengthen Steel Derivatives Ecosystem

The National Stock Exchange of India has signed a Memorandum of Understanding (MoU) with the Steel Users Federation of India to jointly develop India’s steel and commodity derivatives ecosystem, in a move aimed at strengthening price-risk management tools for one of the country’s largest industrial sectors.

Announced on 27 May, the partnership will focus on creating a robust and transparent framework that allows participants across the steel value chain to hedge price volatility using exchange-traded derivatives. NSE said the collaboration is designed to improve both risk management and price discovery in domestic steel markets.

Focus On Product Development And Industry Outreach

Under the agreement, both organisations will work jointly on product design, market outreach, industry consultations, awareness programmes, and capacity-building initiatives. The goal is to support the launch and adoption of steel-linked and other relevant commodity derivative products in India’s financial markets.

The initiative is expected to benefit a wide range of stakeholders, including steel manufacturers, processors, MSMEs, original equipment manufacturers (OEMs), infrastructure companies, capital goods firms, and end-users that remain exposed to frequent fluctuations in steel and raw material prices.

Steel Industry Growth Drives Need For Risk Management Tools

India remains one of the world’s largest steel producers and consumers. According to industry data cited by Financial Express, India’s crude steel production in FY26 rose nearly 11% year-on-year to around 168.4 million tonnes, with national capacity projected to reach 300 million tonnes by 2030. Steel continues to be a critical input across automobiles, engineering, infrastructure, consumer durables, and construction.

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Sriram Krishnan, Chief Business Development Officer at NSE, said the Indian steel industry has matured significantly and now requires more transparent and efficient risk-management tools. He added that the collaboration with SUFI marks an important step towards building credible and liquid derivatives contracts tailored to the hedging requirements of steel market participants.

Sources:

Economic Times

Financial Express