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Being trading cum cl earing member of Multi Commodity Exchange of India Limited (MCX), National Commo dity & Derivatives Exchange Limited (NCDEX) company offer online trading in more than 52 future commodities. We have specialists from different backgrounds having a broad set of skills and the perfect experience in commodity market. They are able to bring a depth of ta lent and creativity to the company. In order to deliver the best service, we're staffed around the clock. Our knowledge base and avid experience acquired by our technical team leverage o ur customer to benefit much more than that is expected. Time and to market and v alue for money with continued innovation is the main motto of our team. We are trusted for our commitments and our timeliness. SERVICES :: We're constantly thinking creatively, searching for innovations, and working har d to introduce new services. We offer online trading in more than 52 commodity f uture contracts. To enhance client relationship We offer Pro-active Relationship Management: 1.Educating and providing awareness about commodities futures markets to clients . 2.Dedicated relationship team to answer client queries round the clock related t o any of the commodities. 3.Studying price movements and advising clients in trading opportunities on real time basis using various tools 4.Trading Recommendations / Alerts to clients on actively traded commodities via Online messenger, Flash on ODIN terminals. OUR UNIQUE FEATURES :: 1.Instant online fund transfer with Multiple Banks. 2.Efficient uptime & greater stability for high speed. 3.Customized solutions as per client's requirements. 4.Very competitive brokerage rates within the industry. TRAINING AND EDUCATIONAL SEMINARS :: We regularly conduct awareness and educational programs for our esteemed clients , business associates and traders to facilitate knowledge of the advancements be ing made in this sector. TRADABLE COMMODITIES Precious Metals -- (Gold, Silver) Base Metals (Copper and Zinc) Energy (Crude Oil and Natural Gas) Grains (Wheat) Spices (Red Chilli, Cardamom, Jeera, Black Pepper, Turmeric) Pulses (Chana, Urad, Tur) Oil Ref. Soya Oil, Mentha Oil, RBD Palm Olien Others Gaur Seed, Potato, Sugar, Maize, Castor seed, Gaur gum
A commodity is a material that is traded in big quantities and whose quality sta ndards and price are objective and universally applicable. For example, gold is a commodity because quality standards and price of gold are objective and univer sal, but gold jewellery is not a commodity because the price of jewellery depend s on subjective factors such as design, brand image, etc. Other examples of comm odities are: agricultural produce such as foodgrains, pulses, cotton, etc; metal s such as nickel, zinc, aluminium, etc MCX Headquartered in Mumbai, Multi Commodity Exchange of India Ltd (MCX) is a stateof-the-art electronic commodity futures exchange. The demutualised Exchange has permanent recognition from the Government of India to facilitate online trading, and clearing and settlement operations for commodity futures across the country . Having started operations in November 2003, today, MCX holds a market share of o
2012 MCX had a market share of 86%) of the Indian comm odity futures market. MCX was the first exchange in India to initiate evening session s to synchronise with the trading hours of global exchanges in London. crude oil. which we believe enables us to grow our business and expand our market presence. the New York Mercantile Exchange. MCX launched M CXCOMDEX. 2003. NCDEX is the only commodity exchange in the country promoted by national level i nstitutions. The Exchange introduces standardised commodity futures contracts on its p latform. nationwide reac h. MCX’s platform enables domestic partici pants to trade in Indian currency. The Ex change’s platform enables anonymous trades. In December 2009. It commenced its operations on December 15. 2003. large public sector bank and companies. NCDEX National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally ma naged on-line multi commodity exchange. In June 2005. for globally-traded commodities.000 including CTCL trading terminals spread over 1. These contracts in futures exchanges provide an anonymous trading envir onment for ideal price discovery. This unique parentage enables it to offer a bouquet of benefits. which are actively tr aded on our Exchange. Among international alliances. the LIFFE Administration and Manageme nt (under renewal). 1956. NCDEX is a public limited company incorporated on April 23. including MCXAgr i (agricultural commodities index). 2003 under the Compa nies Act.170 registered members operat ing through over 3. NCDEX is a nation-level. as determined by physical market size in India. We also have three rain indices. Shanghai Futures Exchange and T aiwan Futures Exchange. in terms of the number of contracts traded in CY2011 MCX offers more than 40 commodities across various segments such as bullion. namely RAINDEX MUM (Mumbai). MCX has forged strategic alliances with various national and international trade bodies / associations / organisations. technology driven de-mutualised on-line commodity excha nge with an independent Board of Directors and professional management . we have formed strategic alliances with a number of exchanges such as the London Metal E xchange. It is committed to provide a world-class commodity exchange platform for market participants to trade in a wi de spectrum of commodity derivatives driven by best global practices. MCX was the third largest^ commodity futures exchang e in the world. we launched EFP transactions for the first time in India. New York and other major international markets. ISO 14001:2004 Environmental Management System standar d and ISO/IEC 27001:2005 Information Security Management System standard. the Baltic Exchange Limited. The Exchange has more than 2. and almond.577 cit ies and towns across India. which provide s our members with valuable information regarding market movements in the key co mmodities. fer rous and non-ferrous metals. It obtained its Certificate for Commencement of Business on May 9. leading to efficient price discovery. second largest# in Natural Gas and the third largest# in Crud e Oil with respect to the number of futures contracts traded. The Exchange strives to be at the forefront of developments in the commodities f utures industry. MCX has been certified to three ISO standards including ISO 9001:2008 Quality Ma nagement System standard. The shareholders of NCDEX comprises of l arge national level institutions. India’s first real time composite commodity futures index. The institutional pr omoters and shareholders of NCDEX are prominent players in their respective fiel ds and bring with them institutional building experience. which enables parties with futures positions to swap their positions in the physical markets and vice versa. technology and risk management skills.46. MCXEnergy (energy commodities index) and MCX Metal (metal commodities index).ver 85%* (as on March 31.both no t having any vested interest in commodity markets. The Exchange is the world's largest exchange#i n Silver and Gold. profession . and a number of agri-commodities on its pla tform. trust. It was the first exchange in India to off er futures trading in steel. We have introduced several other indices. wh ich are currently in short supply in the commodity markets. energy. and RAINDEXJAI (Jaipur) which track the progr ess of monsoon rains in their respective geographic locations. RAINDEXIDR (Indore). Moreover.
at which point t he number or terms written on the outside became subject to doubt. they were also known t o contain promises of time and date of delivery .stock markets. it was a major focus of these civilizations to keep markets open and trading in these scarce commodities . rare seashells. including those of governments.alism and transparency. For a co mmodity market to be established. dating from ancient Sumerian use of sheep or goats. and innov ators of. Thes e raw commodities are traded on regulated commodities exchanges. there must be very broad consensus on the vari ations in the product that make it acceptable for one purpose or another. History The modern commodity markets have their roots in the trading of agricu ltural products. Gaur Seed. which pave d the way to expanded interstate and international trade. Commodity money and commodity markets in a crude early form are believed to have originated in Sumer where small baked clay tokens in the shape of sheep or goat s were used in trade. piracy. However. Commodity markets are markets where raw or primary products are exchanged. bond markets and currency markets cover those concerns separately and in more de pth. cattle and pigs. in terms of volume traded at the Exchange. This represent ed the first system of commodity accounting. metals. Chana. The ec onomic impact of the development of commodity markets is hard to overestimate.compr ising 23 agricultural commodities. as on February 9. in which they a re bought and sold in standardizedcontracts. This made them a form of commodity money more than an I. wood and weapons. Size of the market The trading of commodities consists of direct physical trading and derivatives t rading. Reputation and clearing became central concerns. to rend er trade itself more smooth and predictable. Early history of commodity markets Historically. Sta mp Act. but less than a guarantee by a nation-state or bank. they represented a promise to delive r that number. This article focuses on the history and current debates regarding global commodi ty markets. other basic food stuffs such as soybeans were only added quite recently in most markets. 2012 offered contracts in 34 commodities . 2 energy. Sealed in clay vessels with a certain number of such token s. 6 precious metals. nor investment. NCDEX is regulated by Forward Markets Commission. can be seen as a commodity. nor d ebt. warehousing. and financing. but the contracts remained on flat tablets. or other items as commodity money. Contract Act and various other legislations. NCDEX is subjected to various laws of the land like the Forward Contracts (Regulation) Act. with that number written on the outside. cloth. Regardless of the details. Exchange traded commodities have seen an upturn in the volume of trading since the start of the decade. One focus of this article is the relationship between simple commodity mone y and the more complex instruments offered in the commodity markets.this made them like a modern f utures contract. electricity) markets but n ot the ways that services. most of which had standards of quality and time liness. The Exchange. were widely traded using standard instruments in the 19th century in the United States. Considering the many hazards of climate. other peoples using pigs. Classical civilizations built complex global markets trading gold or silver for spices. The top 5 commodities. Companies Act. While wheat and corn. were Soya oil. RM seed and Guar gum. theft and abuse of mili tary fiat by rulers of kingdoms along the trade routes. trusted by many peoples to manage and mediate trade and commerce. It covers physical product (food. NCDEX headquarters are located in Mumbai and offers facilities to its members fr om the centres located throughout India.O. people have sough t ways to standardize and trade contracts in the delivery of such items. This was largely a result of the growing attract ion of commodities as an asset class and a proliferation of investment options w . 1 polymer and 2 other metals. Articles on reinsurance markets. it was only possible to verify the n umber of tokens inside by shaking the vessel or by breaking it. and the states which could ha ndle them most effectively became very powerful empires.U. Eventually th e tokens disappeared. T hrough the 19th century "the exchanges became effective spokesmen for. improvements in transportation.
and is carried out in markets such as wholesal e markets. grade. so that the routing of the shipm ent can be finalized via ship or rail. Latin American and Asian governments are less inclined to accommodate G7 nations on the supply front. Forward contra cts A forward contract is an agreement between two parties to exchange at some fixed future date a given quantity of a commodity for a price defined today. it makes u p for that loss with a profit on the markets. method of settleme nt and delivery point must all be specified. an increasing number of pension fu nds and sovereign wealth funds are allocating more capital to real assets such a s a commodities and commodity-related infrastructure. quantity and location and are only free to negotiate the price. commodity prices could remain durably at relatively high levels as Gulf Arab. Trading on exchanges in China and Ind ia has gained in importance in recent years due to their emergence as significan t commodities consumers and producers.hich has made it easier to access this market. being centrally located. and payment can be settled when the contr act arrives at any delivery point. or with a minimum lag between the trade and delivery due to techn ical constraints. are of standard grade if they are "GMO or a mixture of GMO and Non-GMO No. the second high est year on record. require the existence of agreed standards so that trades can be made without visual inspection. Early on these forward contracts we re used as a way of getting products from producer to the consumer. a futures contract is a standardized forward contract in which the b uyer and the seller accept the terms in regards to product. for exa mple. The global volume of commodities contracts traded on exchanges increased by a fi fth in 2010. Modern forward. up on its 40% share in the previous year. These typica lly were only for food and agricultural products. Chicago. a common practice of farming cooperatives. Inflows into the sector totalled over $60bn in 2010. In essence. Commodity assets under management more than doubled between 2008 and 2010 to nea rly $380bn. Hedging Hedging.5 billion million contracts. Think-tanks such as the Wo rld Pensions Council (WPC) have argued that. were used for rice in seventeenth centur y Japan. Futures contracts A futures contract has the same general features as a forward contract but is st andardized and transacted through a futures exchange. The growth in prices of many commodities in 2010 contributed to the increas e in the value of commodities funds under management. to around 2. . global physical exports of commoditie s fell by 2%. In order to further diversify their investments and mitigate the risks associate d with inflationary debasement of currencies. on the other hand. down from the record $72bn allocated to commodities funds in the previous year. Although more complex toda y. Commodities trading Spot trading Spot trading is any transaction where delivery either takes plac e immediately. early forward contracts for example.S. since the overall supply of the cr op is short everywhere that suffered the same conditions. soybean futures. insures against a poor harve st by purchasing futures contracts in the same commodity. Typically. trading must end two (or more) business days prior to the delivery day. while the outstanding value of OTC commodities derivatives decline d by two-thirds as investors reduced risk following a five-fold increase in valu e outstanding in the previous three years. Delivery and condition guarantees In addition. delivery day. Standardization U. If the cooperative has significantly less of its product to sell due to weather or insects. began in Chicago in the 1840s. China accounted for more than 60% of exch ange-traded commodities in 2009. and a half since 2008. The fixe d price today is known as the forward price. unlike previous recessionary cycles . w ith the appearance of the railroads. Dur ing the three years up to the end of 2010. Spot trading normally involves visual inspection of the commod ity or a sample of the commodity. emerged a s the hub between Midwestern farmers and producers and the east coast consumer p opulation centers. The bulk of funds went into precious metals and energy produ cts. Commodity markets. or futures agreements.
Commodities exchanges Largest commodities exchanges Exchange Country . industrial policy.2 yellow soybeans of Indiana. Similar specifications apply for cotton. eggs. barley. hay. other livestock. 2 yellow soybeans of Iowa.g. othe r beans. many such markets have proliferated drastically in t he late 20th century. stored in silo). and the fluctuations in the oil markets are of particular political interest. during the Persian Gulf War. Similar political stability concerns have from time to time driven the price of oil. poultry. Some commodity market speculation is directly related to the stability of certai n states. e. Illinois and Wisconsin origin produced in the U. Standardization has also occurred technologically.A.S. Most markets are not so tied to the politics of volatile regions .S. or any other commodity whic h is so traded. meats. milk. pork bellies. trade sanctions ag ainst Canadian softwood lumber (within NAFTA) and foreign steel (except for NAFT A partners Canada and Mexico) in 2002 signalled a shift in policy towards a toug her regime perhaps more driven by political concerns . corn . and submit to a broad regime of reforms that amount to a hedge against b eing isolated. stored in silo). There a re signs. orange juice. received and p rocessed in the same format as stocks or equities.. China's entry into the WTO signalled the end of truly isolated na tions entirely managing their own currency and affairs. U. the principal regulator of commodity and futures markets is the Commodity Futures Trading Commission but it is the National Futures Assoc iation that enforces rules and regulations put forth by the CFTC. (Non-screened. has le d to a global trade hegemony . ( Non-screened. feedstuffs. and the need to clearly mention their status as GMO (Genetic ally Modified Organism) which makes them unacceptable to most organic food buyer s. that this regime is far from perfect. Commodity markets and protectionism Developing countries (democratic or not) have been moved to harden their currenc ies. This process began in 2001 wh en the CME launched a FIX-compliant interface and has now been adopted by commod ity exchanges around the world. as it is not traded across oceans by tanker as extensively. wheat.jobs. The need for stable curr ency and predictable clearing and rules-based handling of trade disputes. as the use of the FIX Protoco l by commodities exchanges has allowed trade messages to be sent. Regulation of commodity markets In the United States. speculation on the survival of the regime of Saddam Hussein in Iraq. cocoa. vegetables.even natural gas tends to be more stable.many nations hedging on a global scale against ea ch other's anticipated protectionism.S. however. sugar. other grains. even sustainable forestry and logging practices. Oil Building on the infrastructure and credit and settlement networks established fo r food and precious metals. Ohio and Michigan origin produced in the U.A." Note the distinct ion between states. fruits." and of deliverable grade if they are "GMO or a m ixture of GMO and Non-GMO No. The oil market is an exception. accept International Monetary Fund rules. Oil was the first form of energy so widely traded. were they to fail to join the WTO. join the World Trade Organization (WTO).
JSC Dalian Commodity Exchange Dubai Mercantile Exchange Dubai Gold & Commodities Exchange Euronext. and held in the fo rm of high-karat jewellery. Gold is the world's oldest international currency. more than two-thirds of gold's total accumulat ed holdings is with central banks' reserves. a commodity. . an investment and simply an obje ct of beauty.liffe Hong Kong Mercantile Exchange Indian Commodity Exchange Intercontinental Exchange Iranian Oil Bourse Kansas City Board of Trade London Metal Exchange Minneapolis Grain Exchange Multi Commodity Exchange National Commodity and Derivatives Exchange National Multi-Commodity Exchange of India Ltd National Food Exchange New York Mercantile Exchange New York Board of Trade Rosario Board of Trade Steelbay Winnipeg Commodity Exchange National Spot Exchange GOLD Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency. Africa Commodity exchanges Abuja Securities and Commodities Exchange Africa Mercantile Exchange Bhatinda Om & Oil Exchange Bathinda Brazilian Mercantile and Futures Exchange Chicago Board of Trade Chicago Mercantile Exchange Commodity Exchange Bratislava. China. UK Africa Mercantile Exchange Kenya. With regards to investment value. Major Characteristics Gold (Chemical Symbol-Au) is primarily a monetary asset and partly a commodity. Canada. Gold is an important element of global monetary reserves. private players.CME Group USA Tokyo Commodity Exchange Japan NYSE Euronext USA Dalian Commodity Exchange China Multi Commodity Exchange India Intercontinental Exchange USA.
70 Kilograms Tolas 85.342 billion. particularly in the latter half of 2010. created a 'vi rtuous circle' of higher price expectations among Indian consumers.755 . In local currency terms. strong growth in jewellery demand.Commodity-specific events such as the construction of new production fa cilities or processes. World macroeconomic factors such as the US Dollar and interest rate.150. 2010 was a record y ear for Indian jewellery demand.7 tonnes. and Hong Kong are doorways to important consuming re gions.2 tonnes. as a result of. gold demand is also determined to a large extent by its price level an d volatility. In India. Factors Influencing the Market Above ground supply of gold from central bank's sale.0321507 Kilograms Troy ounces 32. or industry restructur ing. pushed up the value of gold demand by 101% to 1.1035 Grams Troy ounces 0. Indian jewellery demand more t han doubled in 2010. The total supply of gold coming onto the market in 2010 reached 4. The rising price of gold. This compa res with 2009 demand of 669 billon. strong momentum in Chinese gold demand and a paradigm shift in the official sector.1035 Million ounces Tonnes 31. Dubai. Measurement Weight Conversion Table To convert from To Multiply by Troy ounces Grams 31. Istanbul. the revival of the Indian market. annual demand was 13% above th e previous peak in 1998. New York is the home of gold futures trading. Zurich is a physical turntable.88 tonnes in 2010. where central banks became net purchase rs of gold for the first time in 21 years. In 2010. Singapore.Hedging interest of producers/miners. and economi c events. and offic ial gold loans.108 tonnes. at 745. all affect metal prices. Mumbai is under India's liberalised gold regime. Global Scenario London is the world’s biggest clearing house. Indian Scenario India is the largest market for gold jewellery in the world. A 20% rise in the rupee price of gold combined with a 69% rise in the volume of demand. followed by the United States and South Africa. worth US$150billon . where TOCOM sets the mood of Japan.Less than one-third of gold's total accumulated holdings are used as “commodity” for jewellery in the western markets and industry. China was the world's largest gold producer with 340. Demand and Supply Scenario Gold demand in 2010 reached a 10-year high of 3. India was the world's largest gold consumer with an annual demand of 96 3 tonnes.1507 Tonnes Troy ounces 32. a rise of 2% from 2009 levels. unexpected mine or plant closures. reclaimed scrap. which fuelle d purchases. Tokyo. thereby further driving up local prices.812.
where most fund activ ity is focused. although it can also be found associat ed with copper.7% to reac h a new record high of 78. despite a strong recovery in prices over the year. and dis-hoarding fro m countries where export is restricted.4 Moz). which led to strong inflows into both ETFs and physical investment . Silver is an important element of global monetary reserves.258 t).911458 Purity Gold purity is measured in terms of karat and fineness: Karat: pure gold is defined as 24 karat Fineness: parts per thousand silver Silver (Chemical Symbol-Ag) is a brilliant grey-white metal that is soft and mal leable. scrap recovery. Net government sales fell by just over one half to 13. buoyed by safe ha ven concerns. elec trical and thermal conductivity. . is its main physical market. rising by 20.7 Moz (426t) in 2009.00 Troy ounces Avoirdupois ounces Troy ounces Penny weights 20. Today. Silver is invariably quoted in the US dollars per troy ounce.00 Avoirdupois ounces Troy ounces Short tonne Metric tonne 0. Comex is a futures and options exchange. silver is sought as a valuable and practical industrial commodity and as an investment. coupled with the continued absen ce of any disposal from China Global scenario Silver is predominantly traded on the London Bullion Market Association (LBMA) a nd COMEX in New York.7 Moz. as the global hub of over-the-counter (OTC) trading in silver. The main source of silver is in lead ore. Demand for coins and medals surged yet higher from 2008. Silver is unique amongst metals due to the fact that it can be classified as bot h a precious metal and an industrial metal.Kilograms Taels 26.7 Moz (2. implied net investment soared to 136. prim arily driven by lowest stock sales from Russia. ductility.9 Moz (4. owing to stock-related gains in India.6%.447 t) in 2009 on the back of strong investme nt demand. zinc and gold and produced as a by-product of base metal mining activities. Secondary sources are price sensitive. It is an effective portfolio diversifier.9072 1. Most notable increases were seen in Bolivia and Argentina (both +6.09714 0. and rea ctivity.41 Troy ounces Grains 480.7172 Kilograms Bahts 68.8 Moz) with b y largest single decline coming from Australia (-9. In 2009. high reflectance of light. Secondary silver sources include coin melt. Demand and Supply Scenario Silverware achieved an increase of 4. sensitivity. Silver has unique properties such as its strength. Scrap supply continued to decrease in 2009 by almost 6% to 165. LBMA. malleability.
Major refined copper exporting countries are Chile.Cu) is a malleable and ductile metallic element that i s an excellent conductor of heat and electricity. indust rial applications. Copper is one of the most recycled of all metals. US A.000 MT. Factors influencing Indian market Economic events such as national industrial growth. Demand and supply scenario Copper mine production was up nearly 2%. This is in sharp contrast to most developed economies. It is also corrosion resistant and antimicrobial. Germany. Geopolitical events involving governments or economic paradigms and armed confli ct can cause major changes.653 million MT in 2009. which acco . India's consumption of refined copper per annum is around 535. Russia and Pe ru. COPPER major Characteristics Copper (chemical symbol . Zambia. when it had seen an oversupply of 343. In 2010. It is our ability to recycle m etals over and over again that makes them a material of choice. global financial crisis.000 MT. Silver demand is underpinned by the demand from jewellery and silverware. Peru. and overall industrial growth. Japan. from 15. respectively. A faster growth in demand against supply often leads to a drop in stocks with th e government and investors. compared with 18.099 million MT in 2010.000 MT in 2010.186 million MT. unexpected mine or plant closures. penalties. and inflation affect metal prices. global refined copper production was 19. or industry restructuring. while major refined copper importing countries are China. In India. newly de veloped and developing countries. up from 18. the real industrial demand occupies a small share in the total industr ial demand of silver. USA. who stor e their savings in silver bangles and coins. Copper is an important contributor to the national economies of mature. Australia and Indonesia. Indian scenario India's production of refined copper is approximately around 4% of the total wor ld production and in terms of figures it is around 600. Commodity-specific events such as the construction of new production facilities or processes. together are responsible for around 32%. where demand has expanded more than five-fold in less than 30 years. the global copper market witnessed defi cit of 14. all affect metal prices.805 million MT in 2009 to16. Governments set trade policy (implementation or suspension of taxes. In India. and quotas) that affect supply by regulating (restricting or encouraging) materi al flow.200 million MT.Indian scenario India's silver demand averages 2500 tonnes per year. rec ession. silver demand is also determined to a large extent by its price level and volatility.000 MT. Global scenario While Chile accounts for 34% of the total world copper mine production.95 tonnes in 2010. It stands at the third place in context of the world consumption after steel and aluminium. China.000 MT and 410. and global refined copper consumption was 19. whereas the country's produ ction was around 206. Growth in refined copper usage has been especially strong in Asia. After substantial surpluses in 2008 and 2009. Ital y and Taiwan.243 million MT in the previous year. Nearly 60% of India's silver demand comes from farmers and rural India.
cons ume 10% of the country's copper production. penalties. up from 165. Indian scenario In 2009. and malleable bluellrey metal that has been in use for at least 5. all affect metal prices. India's refined lead consumption in 2009 increased by 3% y-o-y to 187.000 MT. There is also a national economic growth factor. while major refined lead importing countries are USA. Peru and the United States.3% higher than in 2009. This was main ly due to rises in China. followed by China (21%). Australia leads with 35 % of the world reserve base of lead. Global refined lead production over 2010 was 9.BSNL and MTNL. Two major state-owned telecommunications service providers . and s o forth). The main producers of lead are Hindustan Zinc Limited (HZL) and Indian Lead Limi ted (ILL). United Kingdom and India. USA (11%) and Kaza khstan (4%). refined lead production was around 207. dem and metals in a way that depends on their current economic position. USA and Europe. Governments set trade policy (implementation or suspension of taxes. India is emerging as net exporter of copper from the status of net importer on account of rise in production by these three companies. It is usually found in association with zinc.329 million MT in 2010. and quotas) that affect supply by regulating (restricting or encouraging) materi al flow. Major refined lead exporting countries are Australia. Economic events such as national industrial growth.unts for only 3% of the world copper market. Global refined lead consumption had risen to 9.761 million MT in 2009. as well as copper ores. accident. world lead mine production was 6. LEAD Lead (chemical symbol . USA and India. It is one of our planet's most sustainable and recyclable commodities. The lead production process consumes less energy as compared to the production o f any other metal. supply disruption. silver. ductile.000 years.Pb) is very corrosion-resistant. Demand and Supply Scenario In 201 0. Germany and Canada. Commodity-5pecific events such as the construction of new production facilities or processes.000 MT. while major re fined lead consuming countries are China.000 MT of lead in 2009. and Hindustan Copper are three major producers of copper in India. or industry restructuring. India imported 125.000 MT in 2008. strike. Geopolitical events involving governments or economic paradigms and armed confli ct can cause major changes. up from 181. Hindalco.000 MT in 20 08. Factors Influencing the Market Copper prices in India are fixed on the basis of the rates that rule on the inte rnational spot market. rec ession. new uses or the discontinuance of historical uses. unexpected mine or plant closures (natural disaster. and inflation affect metal prices. Sterlite Industries. Global scenario The world's reserve base of lead is estimated at 170 MT. Recycl ed lead accounts for more than 60% of the total lead production. Societies. Factors Influencing the Market Lead prices in India are fixed on the basis of the rates that rule on the Intern . an increase of 20% compared with lead imports in 2008. global financial crisis. Mexico and the Russian Federation that more than offse t decreases in Ireland. up from 8 .802 mil lion MT in 2009. Major refined lead producing countries are China. and Rupee and US Dollar exchange rates. as they develop.311 million MT. up from 8. It can be re-melted any number of times without ever losing any of its properties.
petrochemicals. Categories of Crude oil West Texas Intermediate (WTI) crude oil is of very high quality. of which OPEC was 112 billion tones. naphtha. Its API gravity is 39. as they develop. Oil and gas account for about 60 per cent of the total w orld's primary energy consumption. Almost all industries including agriculture are dependent on oil in one way or o ther. distillate fuel oil. paraffin wax. accident. Note: barrels per tonne vary from origin to origin. are largely and directly affected by the oil prices. Crude oil Crude oil is a mixture of hydrocarbons that exists in a liquid phase in natural underground reservoirs. rec ession. pesticides and insectici des. Aviation gasoline. The prices of crude are highly volatile.6 million bbl/d) and Japa n (5. Commodity-specific events such as the construction of new production facilities or processes. residual fuel oil. Governments set trade policy (implementation or suspension of taxes. jet fuel. and Rupee and US Dollar exchange rates. petro leum coke. Economic events such as national industrial growth. new uses or the discontinuance of historical uses.98 litres. and s o forth). although on a daily basis the pricing relationships between these can very greatly.7 billion tones (in 2002) . motor gasoline.65 barrels . and it contains only about 0. . and quotas) that affect supply by regulating (restricting or encouraging) materi al flow. strike. perfumes. Brent Crude Oil stands as a benchmark for Europe. followed by China (5. Societies. Geopolitical events involving governments or economic paradigms and armed confli ct can cause major changes. Balance recoverable reserve was estimated at about 142. United States (20 million bbl/d). supply disruption. asphalt and other products are obtained from the processing of crude and other hydrocarbon compounds. penalties. The OPEC has identified China & India as their main buyers of oil in Asia for several yea rs to come. There is also a national economic growth factor. paints. and inflation affect metal prices. dem and metals in a way that depends on their current economic position. WTI is generally priced at ab out a $2-4 per-barrel premium to OPEC Basket price and about $1-2 per barrel pre mium to Brent. India is very much reliant on oil from the Middle East (High Sulphur). Oil & lubricants. 1 short ton = 6. lubricants. High oil prices lead to inflation that in turn increases input costs. The world consumes about 76 million bbl/day of oil.6 degrees (making it a "light" crude oil). etc. liquefied petroleum gas. global financial crisis.33 barrels . 1 tonne = 7.2 4 percent of sulphur (making a "sweet" crude oil). Global Scenario Oil accounts for 40 per cent of the world's total energy demand. kerosene. unexpected mine or plant closures (natural disaster.4 million bbl/d) are the top oil consuming countries.ational spot market. transportation. 1 US barrel = 158. all affect metal prices. Crude Oil Units (average gravity) 1 US barrel = 42 US gallons. reduces non-oil demand and lower investment in ne t oil importing countries. or industry restructuring.
India imports about 70 per cent of its total oil consumption and it makes no exports. even the prices of crude bi-products are allowed to vary +/10% keeping in line with international crude price. It is found associated with fossil fuel s. an activity r estricted earlier to state owned entities. wh ich is essential for global trade. Market Influencing Factors OPEC output and supply . subject to certain governmen t laid down norms/ formulae. The current Members are Algeria. and is created by methanogenic organisms in marshes. and landfills. . Weather/storms.1 million barrels per day in refining capacity. DOE / API imports and stocks. pipelines are used for inland transport. Indonesia. and sometimes helium and nitrogen. LNG projects are highl y capital intensive in nature. as methane clathrates. OPEC controls almost 40 percent of the world's crude oil.8 million barrels per d ay. However.2 million barrels per day. Natural gas is commercially produced mostly fr om oil fields and natural gas fields. propane. carbon dioxide. Kuwait. as domestic oil production is unlikely to ke ep pace with demand. India had a total of 2. India's rough production was only 0. butanes. It i s a gas consisting primarily of methane. As on date. Nigeria. Libya. It accounts for about 75 per cent of the world's proven oil reserves. Disinvestment/restructuring of public sector units and complete deregulation of Indian retail petroleum products sector is under way. Global demand particularly from emerging nations. Cambay. Its exports represent 55 per cent of the oil traded internationally. Iraq. it must undergo extensive processing t o remove almost all materials other than methane. pentanes and higher molecular weight hydr ocarbons. Upper Assam. It is an organi zation of eleven developing countries that are heavily dependent on oil revenues as their main source of income. Before natural gas can be used as a fuel. environment friendly energy source.4 billion barrels) are located primaril y in Mumbai High. The major difficulty in the use of natural gas is transportation and storage. Qatar. Indian government in 2002 officially ended the Administered Pricing Mechanism (A PM). Indian Scenario India ranks among the top 10 largest oil-consuming countries. Balance recoverable reserve was about 733 million tones (in 2003) of which offsh ore was 394 million tones and on shore was 339 million tones.OPEC fact sheet OPEC stands for 'Organization of Petroleum Exporting Countries'. Natural gas Natural gas is a colourless. Terrorism. The oil reserves of the country (about 5. Government has permitted foreign participation in oil exploration. elemental sulfur. Krishna-Godavari and Cauvery basins. Refinery fires & funds buying. in coal beds. Dollar fluctuations. bogs. India faces a large supply deficit. War and any other unforeseen geopolitical factors tha t causes supply disruptions. odourless. Liquified Natural Gas (LNG) is a proven comme rcial technology for transporting natural gas across oceans. the United Arab Emirates a nd Venezuela. Saudi Arabia. it cannot be used under oceans. Ira n. The by-products of that proces sing include ethane. Oil accounts for about 30 per cent of India's total energy consumption. Now crude price is having a high correlation with the international market price. The coun try's total oil consumption is about 2. Wh ile. as special ships and separate LNG receiving terminals are required.
Industrial consumption is expected to be around 40% of total glob al consumption by 2030 as projected by Energy Information Administration. industries consume the largest portion of natural gas.6 bcm and imports as LNG has been 10. US (582 bcm). South Korea (36 bcm) and Spain (30 bcm). 2009 are estimated at 1 85. The other fractions obtained in natural gas processing like butane and propane a re used in manufacture of LPG (LIquified Petroleum Gas) Global The world's proven natural gas reserves as on January 1. Fertilizer (41%) and power (37%) are the major users of natural gas in India. While major exporters of piped natural gas are Russia (154 bcm). The total global consumption of natural gas in 2008 is estimated to be 3018.3 bcm and 226. Indian scenario Natural gas has gained prominence in India too as in the rest of the world over the last decade. Iran (117 bcm).The major applications of natural gas are: Fuel source for power generation Domestic / Commercial utilization for cooking. warming as piped natural gas Industrial uses: fuel source for boilers.6 bil lion cubic metre with the main producing countries being Russia Federation (602 billion cubic metre). reserves-to-production ratios for most regions ar e substantial. The total global trade in 2008 as piped natural gas and as LNG is reported to be 587.7 bi llion cubic metre with the main consuming countries being US (657 bcm). weather and crude oil prices are the major demand-side fact ors influencing price. As there are limited alternatives for changing consumption or production in the short run. Canada (103 bcm) and Norway (93 bcm). Natural gas consumption has increased strongly over the past decade. . air conditioners etc Feed source for fertilizer manufacture Compressed Natural Gas (CNG) is being widely used as an alternative automobile f uel Production of petrochemicals like methanol etc. Th e fertilizer sector in India is highly subsidized by the Government and it fixes the rate at which natural gas is provided to the fertilizer manufacturing units . too like that of any other commodity are a function of marke t supply and demand. and Qatar together account for about 57% of the total reserves. Malaysia (29 bcm). which has acquired New York Mercantile Exchan ge (NYMEX).5 bcm. India has consumed around 41. Russia F ederation (420 billion cubic metre). Russia. Iran. of w hich domestic production is 30. the major importers are US (104 bcm). the reserves-to-production ratio is estimated at 63 ye ars. The total global production of natural gas in 2008 is estimated to be 3065. Severe winter in developed countries can increase demand for domestic and commercial heating and is a major influencing factor.79 bcm. The major exporters of CNG are Qatar (40 bcm). The share of imports is expected to increase in the coming years and cross 30%. Strength of economy. Worldwide. Germany (87 bcm) and Italy (75 bcm).4 bcm of natural gas in 2008. Canada (100 bcm) are the ma jor consumers. Globally. World nature gas market Chicago Mercantile Exchange (CME). Canada (175 bcm) and Iran (116 bcm). de spite this rising consumption. from current level of around 25%. Market influencing Natural gas prices. ovens.2 trillion cubic metre. Indonesia (27 bcm) and the major importers are Jap an (92 bcm). followed by the power sector. runs the world's most liquid natural gas derivative market. changes in supply or demand over a short period often result in large price movements. However. of which almost three-quarters are located in the Mid dle East and Eurasia.
Green revolution and increased focus by Government on wheat has helped wheat pro duction to surge sharply from around 6 million tonnes at time of independence to current levels. While US (25 . cookies. Wheat crops around the world have their own unique production cycles of planting and harvest timeframes. The major importing regi ons are Middle-east Asia.12 million to nnes) are major exporters. Algeria are the most important importing nations. Whe at accounts for around 30-35% of India's total foodgrain production of around 22 0 million tonnes. vodka. EU-27. alcohol. The combined production of all cereals in 2008-09 is estimated to be 2525 million tonnes. Rajasthan (10%) and Madhya Pra desh (10%) are the main wheat producing states of India. South-east Asia and North-west Africa. MCX. due to low productivity it is only the third largest producer after EU-27 and China. India. . India's annual production of wheat has been around 75-79 million tonnes from 200 6-07. Uttar Pradesh (34%). breakfast cereal. biscuits. 112. USA and Russia are the five major producers of wheat accoun ting for close to 70% of the total global production. there are a large number of countries importing wheat with maximum demand emanating from developing nations. which too ha s supported the rise in output over the years. which acquired Chicago Boar d of Trade. However. Different varieties of wheat are grown across the world. However. Hurricanes and severe weather can disrupt suppl y. Wheat is a globally important source of dietary carbohydrate (starch) and protei n (gluten).6. NCDEX US FOB and EU (France) FOB prices determine the physical prices Indian Scenario India has the largest area in the world under wheat cultivation. The global trade in wheat during 2008-09 was sharply up at around 140 million tonnes in 2008-09 f rom an average of around 110 . It is reported to be grown domestically from atleast as early as 9000 B C and is now grown in almost all parts of the world. Brazil. cakes. with production in 2008-09 estimated to be around 78. Its grain is a staple food used to make flour for leavened. interest rates and other economical indicators do influence natural gas prices. noodles etc and for fermentation to make beer.35 million tonnes). imports and storage levels. Haryana (13%). Australia (8-18 million tonnes) and Argentina (6 . T riticum durum (hard wheat) and Triticum compactum Global scenario The annual global wheat production has been in the range of 600-630 tonnes in th e recent years.Chicago Mercantile Exchange. flat and steamed breads.5. Close to 90% of the area under wheat is irrigated.115 million tonnes in the recent previous years.6 million tonnes. with 2008-09 production in these regions being 151. Wheat is the most important cereal traded in the world market. Zhenghzhou Commodity Exchange. China.The supply side factors influencing prices are variations in natural gas product ion. or biofuel. Indonesia. Punjab (20%). WHEAT Wheat is one of the world's three most important cereal crops along with maize a nd rice. Kansas City Board of Trade. EU-27 (15-25 million tonnes). Macro-economic factors like exchange rates. India's annual wheat consumption is estimated to be around 72 million tonnes currently. pasta.8 million tonnes respectively. Canada (15-20 m illion tonnes). Important World Wheat Markets Derivatives exchanges . South Afr ican Futures Exchange. 68 and 63. The three principal typ es of wheat used in modern food production are: Triticum vulgare (soft wheat). in 2008-09 it is estimated to have risen sharply to 689 million tonnes. 78. Egypt. It is also used f or feeding animals to a limited extent.
the grain is also sold at pre-determined prices to the open market. Historicall y.e. Several international agencies like US Dept. agencies take the decision to bring in imp orts and the current policies are not in favour of exports. Govt. The procured wheat is used to maintain a minimum buffer stock for meeting unfore seen exigencies. Government plays a major role in the wheat value chain in India as the cereal is very important for the country's food security. periodic reports on global supply-demand situation. imports / exports are very important influencing factor with regards to Indi an wheat prices. PDS sales. International Grain s Council. Open Market Sal es. open market prices too do not generally fall below this price. agencies have been recently procuring close to 25-30% of annual produc tion. Food and Agricultural Organisation release regular. the several variations in production or consumption at various major or minor producing or consuming country. buffer stocks. India is not a major player in global markets India has resorted to impo rts. are reflected in the domestic long-term price trend. whenever there is a supply tightness. of Agriculture. seasonal crop and prices usually tend to rise during the cul tivation period. in the short-term normally there is no significant relation with internati onal prices. How ever. India has also exported around 5 mill ion tonnes of wheat in 2003-04. The Govt. Weather has a profound influence on production. which i nfluence global prices. The Central Govt.Wheat is cultivated as a rabi crop in India. sets the Mini mum Support Price (MSP) every year. December to March due to scarcity in the market and dip du ring the peak arrival period (April and May). especially in Haryana and Punjab as temperature plays a crucial role in determining the yield. with sowing being undertaken from O ctober to December and harvesting from March to May. which sets the mood for the upcoming season. Though. As govt. the procurement has been around 15-20%. The official marketing seas on of wheat in India is assumed to commence from April. Market Influencing Factors Wheat is an annual. for providing foodgrains required for Public Distribution Syste m (PDS) and the other foodgrain based welfare programmes of the Government. . i. which is widely looked upon by the global pla yers. Despite international trade being limited. policies with regard to MSP. In a ddition.
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