Bombay Metal Exchange (BME): Activities, Working and Importance
Bombay Metal Exchange (BME) is a major voluntary metal trading association in India. It was established in 1960 and is the first association of its kind worldwide. BME focuses primarily on industrial metals such as copper, aluminum, lead and zinc. Its main objective is to balance the demand and supply of the metal market.
Bombay Metal Exchange (BME) activities
- Trading metals and setting prices.
- To lay down standard terms and conditions for purchase and sale of metals.
- To organize and regulate the metals industry.
- To meet the requirement of metals for Indian industries.
Methodology of BME
- BME is a member based organization and its members are traders, producers, exporters and importers.
- Members conduct their transactions in BME and set the price. BME announces prices daily which become standard prices for the industry.
- BME helps resolve disputes between its members.
- Overall, BME plays an important role in organizing the metals industry and maintaining the balance between supply and demand of metals in India.
Importance of BME
- BME stabilizes metals prices by determining spot and forward rates.
- It provides a secure and regulated platform for trading metals.
- This provides easy availability of essential metals to the industries.
- This helps in controlling the required supply of metals in the Indian market.
When was Bombay Metal Exchange (BME) established?
In 1960
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