Wednesday, 25 March 2020
Sunday, 15 March 2015
NICKEL
Introduction
Nickel is a metal with a bright future as it is the main alloying metal needed in the production of certain types of stainless steel. The strength and life span of products manufactured using stainless steel are superior to the one’s produced using non-stainless steels.
Demand and Supply
World production of primary Nickel during 2011 was 1.612 million metric tonnes (MMT), up by 11.53% as compared with 1.446 MMT in 2010. Whereas, the world's consumption during 2011 was at 1.608 MMT vis-à-vis 1.465 MMT in 2010, up by 9.76%.
Global Scenario
Russia, Canada and Norway are the world's largest nickel exporters accounting for almost 49% of world exports. On the other hand, China, USA and Germany are the world's largest nickel importers accounting for around 48% of world imports.
Indian Scenario
The annual demand for nickel in India is around 40,000 MT and its market in India is totally dependent on imports.
Factors Influencing the Market
Nickel prices in India are fixed on the basis of the rates that rule on the international spot market, and Indian Rupee and US Dollar exchange rates. Economic events such as national industrial growth, global financial crisis, recession and inflation affect metal prices. Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures, or industry restructuring affect the market. Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow. Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes. As societies develop, their demand for metal increases based on their current economic position, which could also be referred as ‘National Economic Growth Factor’.
COPPER
Introduction
Copper (chemical symbol - Cu) is a malleable and ductile metallic element that is an excellent conductor of heat and electricity. It is also corrosion resistant and antimicrobial. It stands at the third place after steel and aluminium, in the context of consumption. Copper is an important contributor to the national economies of mature, newly developed and developing countries. Copper is one of the most recycled of all metals. It is our ability to recycle metals over and over again that makes them a material of choice.
Demand and Supply
In 2011, world’s copper mine production continued to underperform with respect to capacity, and remained at the 2010 level of 16.005 million metric tonnes (MMT). In 2011, the global refined copper production was 19.630 MMT, up from 18.998 MMT in 2010. The global refined copper consumption was 19.988 MMT, compared with 19.375 MMT in the previous year. On a regional basis, refined copper production increased in Africa (11%), Asia (6%), Europe (4.5%) and Oceania (12.5) but decreased in the Americas (-3.5%).
Global Scenario
Growth in refined copper usage has been especially strong in Asia, where demand has expanded more than five-fold in less than 30 years. Major refined copper exporting countries are Chile, Zambia, Japan, Russia and Peru, while major refined copper importing countries are China, USA, Germany, Italy and Taiwan.
Indian Scenario
In 2012, India's production of refined copper is 689,312 MT, which is around 4% of the total world production. Sterlite Industries, Hindalco, and Hindustan Copper are three major producers of copper in India. From the status of a net importer, India is emerging as a net exporter of copper on account of a rise in the production of copper. Electric and electronic products industry has become India's largest copper consuming sector, accounting for 36% of the total Indian copper consumption. Telecom is still India's second largest copper consuming sector, accounting for 20% of the total Indian copper consumption.
Factors Influencing the Market
Copper prices in India are fixed on the basis of the rates that rule in the international spot market, and Indian Rupee and US Dollar exchange rates. Economic events such as the national industrial growth, global financial crisis, recession and inflation affect metal prices. Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of historical uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), or industry restructuring, all affect metal prices. Trade policies set by the Government (implementation or suspension of taxes, penalties, and quotas) affect supply as they regulate (restricting or encouraging) material flow. Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes. As societies develop, their demand for metal increases based on their current economic position, which could also be referred as ‘National Economic Growth Factor’.
SILVER
Introduction
Silver (Chemical symbol-Ag) is a brilliant grey-white metal that is soft and malleable. Silver’s unique properties include its strength, malleability, ductility, electrical and thermal conductivity, sensitivity, high reflectance of light, and reactivity. The main source of silver is lead ore, although it can also be found associated with copper, zinc and gold and produced as a by-product of base metal mining activities. Secondary silver sources include coin melt, scrap recovery, and dis-hoarding from countries where export is restricted. Secondary sources are price sensitive.
Demand and Supply
In 2011, the worldwide silver fabrication demand was 876.6 million ounces (Moz)—down by 1.5% from the value in 2010, but still reaching its second highest level since 2000. Globally, in 2011, the physical silver bar investment grew by 67% to 95.7 Moz, while fabrication of coins and medals rose by almost 19% to an all-time high of 118.2 Moz. In 2011, silverware offtake dropped by 10.2% to 46.0 Moz from the previous year, as a result of lower demand in India. Higher prices coupled with ongoing structural decline in the western markets caused a fall in the Indian silverware demand. Part of this fall was offset by some gains in China. The world silver mine production increased by 1.4% to a new record level of 761.6 Moz in 2011, as compared with the previous year. In 2011, scrap supply rose by 12% over the previous fiscal to a second straight record of 256.7 Moz, driven by gains in jewellery and silverware recycling on higher prices. Government sales fell by a massive 74 per cent to a 14-year low of 11.5 Moz in 2011.The drastic decline was entirely due to a collapse in sales from Russia, where disposals dropped by nearly 90%. Notable production losses were observed in Australia, Peru, the United States and Turkey in 2011, amounting to 20.3 Moz.
Global Scenario
Silver is predominantly traded on the London Bullion Market Association (LBMA) and COMEX in New York. LBMA, the global hub of over-the-counter (OTC) trading in silver, is the metal’s main physical market. Comex is a futures and options exchange, where most funds’ activities are focused. Silver is invariably quoted in US Dollars per troy ounce.
Indian Scenario
The average annual demand for silver in India is about 2500 Metric tonnes (MT) per year. In 2011, the country’s production was around 342.13 MT. Nearly 60% of India's silver demand comes from farmers and rural India, who store their savings in the form of silver bangles and coins.
Factors Influencing the Market
Economic events such as India’s industrial growth, the global financial crisis, recession and inflation affect metal prices. Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring affect the market. Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect supply by regulating (restricting or encouraging) the material flow. Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes. A faster growth in demand against supply often leads to a drop in stocks with the government and investors. Silver demand is underpinned by the demand from jewellery and silverware, industrial applications, and overall industrial growth. In India, the real industrial demand occupies a small share in the total industrial demand for silver. This is in sharp contrast to most developed economies. In India, silver demand is also determined to a large extent by its price level and volatility.
CRUDE OIL
Introduction
Crude oil is a complex mixture of various hydrocarbons found in the upper layers of the earth's crust. Crude oil is often attributed as the “Mother of all Commodities” because of its importance in the manufacturing of a wide variety of materials. Crude oil accounts for 35% of the world's primary energy consumption. Crude oil is used to produce fuel for cars, trucks, airplanes, boats and trains. It is also used for a wide variety of other products including asphalt for roads, lubricants for all kinds of machines; plastics for toys, bottles, food wraps, among others.
Global Scenario
Global proven oil reserves in 2011 was around 1652.6 thousand million barrels, of which the OPEC had 1196.3 thousand million barrels. Crude oil accounts for 33% of the world's primary energy consumption. Global oil demand was 88.3 million barrels per day (mmb/d) in 2011, an increase of around 0.7% from the previous year. In 2010, Russia, Saudi Arabia, the US and Iran were the top oil producing countries. Although the US is the world's third largest oil producing nation, it is the world's largest consumer and importer of oil followed by China, Japan and India.
Indian Scenario
Oil accounts for 29% of India's total energy consumption and there seems to be no possibility of scaling down the dependence on these fuels. Crude oil production during the period April-March 2012 (provisional) was 38.19 million metric tonne (MMT), as compared with 37.71 MMT during the corresponding period last year. The total oil consumption in 2010 was around 3.34 mmb/d. India is the fourth largest consumer of oil and imports more than 70% of its crude oil requirement. India's refining capacity stood at 193.39 MMTPA on January 1, 2012 of which 116.89 MMT is in the public sector, 6.00 MMT in joint ventures, and the balance 70.50 MMTPA in the private sector. The Government of India realised the need to explore more areas and has implemented New Exploration Licensing Policy (NELP), according to which 100% FDI is permitted for small and medium sized oil fields through competitive bidding.
Price Moving Factors
OPEC output, supply and spare capacities Increased demand from emerging and developing countries; geopolitics US crude and products inventories data Currency fluctuations Weather conditions Speculative buying and selling Changes in the refining sector, for example, a drop in the refinery utilisation rate
Crude oil is a complex mixture of various hydrocarbons found in the upper layers of the earth's crust. Crude oil is often attributed as the “Mother of all Commodities” because of its importance in the manufacturing of a wide variety of materials. Crude oil accounts for 35% of the world's primary energy consumption. Crude oil is used to produce fuel for cars, trucks, airplanes, boats and trains. It is also used for a wide variety of other products including asphalt for roads, lubricants for all kinds of machines; plastics for toys, bottles, food wraps, among others.
Global Scenario
Global proven oil reserves in 2011 was around 1652.6 thousand million barrels, of which the OPEC had 1196.3 thousand million barrels. Crude oil accounts for 33% of the world's primary energy consumption. Global oil demand was 88.3 million barrels per day (mmb/d) in 2011, an increase of around 0.7% from the previous year. In 2010, Russia, Saudi Arabia, the US and Iran were the top oil producing countries. Although the US is the world's third largest oil producing nation, it is the world's largest consumer and importer of oil followed by China, Japan and India.
Indian Scenario
Oil accounts for 29% of India's total energy consumption and there seems to be no possibility of scaling down the dependence on these fuels. Crude oil production during the period April-March 2012 (provisional) was 38.19 million metric tonne (MMT), as compared with 37.71 MMT during the corresponding period last year. The total oil consumption in 2010 was around 3.34 mmb/d. India is the fourth largest consumer of oil and imports more than 70% of its crude oil requirement. India's refining capacity stood at 193.39 MMTPA on January 1, 2012 of which 116.89 MMT is in the public sector, 6.00 MMT in joint ventures, and the balance 70.50 MMTPA in the private sector. The Government of India realised the need to explore more areas and has implemented New Exploration Licensing Policy (NELP), according to which 100% FDI is permitted for small and medium sized oil fields through competitive bidding.
Price Moving Factors
OPEC output, supply and spare capacities Increased demand from emerging and developing countries; geopolitics US crude and products inventories data Currency fluctuations Weather conditions Speculative buying and selling Changes in the refining sector, for example, a drop in the refinery utilisation rate
Subscribe to:
Posts (Atom)