WORLD NEWS | SGX plans to focus on hedging products linked to India’s infrastructure, ESG initiatives

SINGAPORE, May 16 (PTI) – Singapore Exchange (SGX Group) plans to focus on risk hedging products related to India’s infrastructure development and environmental, social and governance (ESG) initiatives, as it aims to expand its presence in metals and minerals such as green steel and lithium.

William Chin, Head of Commodities at SGX Group, pointed to the close relationship SGX Group has built with the Indian financial and business community over the past few decades, and its commitment to working with partners and stakeholders to develop solutions to serve both market players. importance.

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Risk hedging products related to India’s infrastructure development, green initiatives, ESG and new energy minerals and metals are some of the areas SGX Group wants to focus on, Chin said.

“We are expanding our footprint in green steel and metals and minerals such as lithium,” Chin said, pointing to India’s massive infrastructure development, industrial production and renewable energy-based development underpinned by COVID-19 as the world’s most populous country. The demand for electric vehicles is surging across the country.

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Chin believes Indian companies, as a core stakeholder group, will play an important role in price discovery for such key products, while the government continues to push initiatives such as the exploration of minerals from the country’s resource-rich basins.

“We can consider partnering with Indian companies to invest in contracts to develop new minerals, which can help in price discovery, which is critical to Indian trade flows,” said a senior SGX executive, pointing out that open wireless access via an internet-based network border deal.

In particular, Chin highlighted the global nature of SGX’s more than 10-year-old iron ore contract, which, while centered on the China trade, is a useful reference for India’s ferrous metals trade as a rapidly industrializing nation.

“China and India are big markets known globally, and at SGX, we have established a large and growing network among companies in these two countries,” Chin said.

On India’s participation in the SGX iron ore contract, Chin highlighted that daily trading volumes for March and April 2023 were over 161,000 and 156,000 lots respectively.

“We are very encouraged by the increase in daily iron ore production by Indian players, we have seen it grow several times,” Chin said.

The Singapore International Ferrous Week (SIFW), which will be held from 22-26 May 2023, is expected to attract massive participation from India. Chin also saw global experts at Ferrous Metal Week, especially on ESG, sustainability and carbon.

“We want to understand how ESG, sustainability and carbon will play a role in future trade in products and materials related to infrastructure development and industrialization plans,” he said.

The Asian Railway Week platform will also feature a large delegation from China after several years of absence due to COVID-19 travel restrictions and other economic challenges.

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)