Mcx Crude Oil

Crude Oil.....

Know Crude Oil

Crude oil is the most widely used energy material in the world. Crude oil is a mixture of hydrocarbons that exists in a liquid phase in natural underground reservoirs. Oil and gas account for about 60 per cent of the total world's primary energy consumption.

Crude oil - as petroleum directly out of the ground is called - is a remarkably varied substance, both in its use and composition. Crude oil is formed from the preserved remains of prehistoric zooplankton and algae, which have been settled to the sea (or lake) bottom in large quantities under anoxic conditions. It was formed over millions of years from the remains of tiny aquatic plants and animals that lived in ancient seas due to compression and heating of ancient organic materials over geological time. The oldest oil-bearing rocks date back to more than 600 million years, the youngest being as old as about 1 million years.

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Although various types of hydrocarbons - molecules made of hydrogen and carbon atoms - form the basis of all crude oils, they differ in their configurations. The chemical structure of petroleum is composed of hydrocarbon chains of different lengths. Because of this, petroleum may be taken to oil refineries and the hydrocarbon chemicals separated by distillation and treated by other chemical processes, to be used for a variety of purposes. It can be a straw-colored liquid or tar-black solid. Red, green and brown hues are not uncommon.

Burning crude oil itself is of limited use. To extract the maximum value from crude, it first needs to be refined into petroleum products. The best-known of these is gasoline, or petrol. However, there are many other products that can be obtained when a barrel of crude oil is refined. These include liquefied petroleum gas (LPG), naphtha, kerosene, gasoil and fuel oil. Other useful products which are not fuels can also be manufactured by refining crude oil, such as lubricants and asphalt (used in paving roads). A range of sub-items like perfumes and insecticides are also ultimately derived from crude oil.

Furthermore, several of the products listed above which are derived from crude oil, such as naphtha, gasoil, LPG and ethane, can themselves be used as inputs or feedstocks in the production of petrochemicals. There are more than 4,000 different petrochemical products, but those which are considered as basic products include ethylene, propylene, butadiene, benzene, ammonia and methanol. The main groups of petrochemical end-products are plastics, synthetic fibres, synthetic rubbers, detergents and chemical fertilisers.

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Considering the vast number of products that are derived from it, crude oil is a very versatile substance. Life as we know it today would be extremely difficult without crude oil and its by-products.

The edifice modern industrial economy as well as agriculture depends upon crude oil in way or the other. Crude oil is also a key variable in global financial markets as the largest traded commodity in the world. Broadly crude oil is categorized into three groups – Brent Crude, West Texas Intermediate and OPEC Crude.

Brent crude is the standard benchmark of crude oil in Europe. Refined mainly in Northwest Europe North Sea coast is the main source of Brent Crude. Priced slightly above the reference price of Organization of Petroleum Exporting Countries Brent crude however is on average lower by U.S. $1-2 per barrel lower compared with West Texas Intermediate.

West Texan Intermediate known as WTI in trade parlance is considered as of very high quality due to very lower sulphur content. WTI normally commands a premium of $ 2-4 dollar per barrel compared with OPEC basket price and 1-2 with Brent Crude.

OPEC, the organization formed in mid 1960s by some of the major oil producing countries, is a powerful cartel in shaping global oil prices. Besides countries in West Asian region other key members in the cartel are Venezuela, Algeria and Nigeria.

Crude oil accounts for nearly 40% of the global energy demand. Global consumption of crude oil is estimated at 80 million barrels per day. The U.S. with 20 million is the leading consumer followed by China, Japan and European Union. Members of OPEC provide around 55% of global crude oil exports.

India, rated as one of the 10 top oil consumers in the world, depends on import for nearly 70% of its crude oil requirements. India’s consumption estimated at 2.5 million barrels per day is expected to rise further due to rapid pace of economic development. Domestic production of crude with less than 1 million barrels per day India depends heavily on imports. Indian imports are mainly from OPEC members.

Crude oil prices are highly sensitive to global political and economic developments. Oil prices surged ahead during the past three years from less than $30 per barrel to over $140 per barrel. Currently hovering around over $ 50 per barrel crude oil prices would play a crucial role in shaping the fortunes global economic developments as well as financial markets for a long time to come

Mcx Zinc

Zinc

Know Zinc

Zinc is the fourth widely used metal after steel, aluminium and copper in the world. Mainly used for galvanizing steel, zinc is also used in alloys, batteries, rubber, paint, electroplating metal spraying and several other sectors. Due to its resistance to non-acidic atmospheric corrosion zinc is instrumental in extending the life of buildings, vehicles, ships and steel goods and structures of every kind.

Zinc is a bluish-white lustrous metal. It is normally covered with a white coating on exposure to the atmosphere. Zinc dust is flammable when exposed to heat and burns with a bluish-green flame. Zinc also exists in many compounds.

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Zinc has a role in normal human growth, taste, and sperm development, but exposure to high levels of zinc through inhalation, ingestion, and dermal contact can cause adverse health effects.

Zinc is used for alloys, electroplating, metal spraying, electrical fuses, batteries, rubber, paint, glue and matches. Zinc is registered as a fungicide, herbicide, and rodenticide.

The primary stationary sources of zinc are electric services, petroleum refining, crude petroleum and natural gas extraction, manufacturing of fabricated rubber products, manufacturing of fabricated metal heating and plumbing products, and manufacturing of inorganic chemicals.

Indoor sources include infiltration of outdoor air, smoking, cooking, and other indoor sources. The average indoor concentration of zinc is normally slightly higher than the outdoor level. Zinc occurs naturally in the earth's crust.

The rapid growth in the Asian region is mainly the trigger for rise in global zinc consumption. Refined zinc output globally is expected to grow by a moderate 3 percent to 10.6 million ton in 2006; it may further move up to 11.0 million ton in 2007. Major producers in Asia are enhancing capacity to in tune with the demand for zinc in the coming years.

India is one of the fastest growing regions of zinc consumption in the world. Indian zinc demand is likely to grow 12-15 percent per annum compared with the global average of 5 percent. Growth in steel sector is the main factor behind the rise in domestic consumption as 70 percent of India’s zinc use is accounted by steel galvanizing.

India hopes to become self reliant in zinc production by 2010. Industry estimates place that India’s annual production has to touch 14 ton per year by 2020 if it has to sustain 10 percent growth till 2010 and at 7 percent rate thereafter.

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The Indian zinc industry entered its transformation phase with the privatisation of the largest zinc producer, Hindustan Zinc Ltd, in favour of the Sterlite group in April 2002. The domestic zinc industry is now completely under the private sector and is in the midst of a serious expansion programme.

Even if one assumes that zinc demand grows by 10 per cent till 2010 and at slower 7 per cent thereafter, India would require zinc capacity of 14 lakh tpa by 2020, in order to be self-reliant. The next round of large capacity additions would, therefore, be warranted from 2008 onwards.

Factors Influencing Zinc Market

**Changes in inventory level at LME wharehouses
**Economic growth rate of major consuming countries
**Global growth and demand in major consuming industries
**Prices of the alternative metal(s)
**Participation of funds

Mcx Lead

Lead..........

Know Lead

Like copper, lead has also been a familiar metal used by human beings since ancient times. Lead, a highly malleable and easy to melt metal, is widely used in various industries even today. However, due to its highly toxic nature, the use of lead has been facing pressure from environmentalists in recent years.

The pressure to end manufacture of lead-based paints is an example of the growing concern on the potential health hazards caused by lead. Plastics, aluminum, tin, and iron are replacing the use of lead in construction materials, containers, packaging, etc. Tin and other metals are being used to replace lead as a solder in some applications where lead could poison people, such as in drinking water systems.

Lead is a very corrosion-resistant, dense, ductile, and malleable blue-gray metal that has been used for at least 5,000 years. Early uses of lead included building materials, pigments for glazing ceramics, and pipes for transporting water. The castles and cathedrals of Europe contain considerable quantities of lead in decorative fixtures, roofs, pipes, and windows.

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Prior to the early 1900's, uses of lead in the United States were primarily for ammunition, brass, burial vault liners, ceramic glazes, leaded glass and crystal, paints or other protective coatings, pewter, and water lines and pipes.

The advent of the electrical age and communications, which were accelerated by technological developments in World War I, resulted in the addition of bearing metals, cable covering, caulking lead, solders, and type metal to the list of lead uses. With the growth in production of public and private motorized vehicles and the associated use of starting-lighting-ignition (SLI) lead-acid storage batteries and terne metal for gas tanks after World War I, demand for lead increased.

Most of these uses for lead continued to increase with the growth in population and the national economy. Contributing to the increase in demand for lead was the use of lead as radiation shielding in medical analysis and video display equipment and as an additive in gasoline.

By the mid-1980's, a significant shift in lead end-use patterns had taken place. Much of this shift was a result of the U.S. lead consumers compliance with environmental regulations that significantly reduced or eliminated the use of lead in nonbattery products, including gasoline, paints, solders, and water systems.

More recently, as the use of lead in nonbattery products has continued to decline, the demand for lead in SLI-type batteries has continued to grow. In addition, the demand for lead in non-SLI battery applications also has continued to grow.

Non-SLI battery applications include motive sources of power for industrial forklifts, airport ground equipment, mining equipment, and a variety of nonroad utility vehicles, as well as stationary sources of power in uninterruptible electric power systems for hospitals, computer and telecommunications networks, and load-leveling equipment for electric utility companies. By the early 2000's, the total demand for lead in all types of lead-acid storage batteries represented 88% of apparent U.S. lead consumption.

Other significant uses included ammunition (3%), oxides in glass and ceramics (3%), casting metals (2%), and sheet lead (1%). The remainder was consumed in solders, bearing metals, brass and bronze billets, covering for cable, caulking lead, and extruded products.

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Lead is mined in the United States, Canada, Mexico, Australia, and Peru. More than 1 million tons of lead is recovered in recycling annually, the majority of which is from the recycling of batteries.

Australia and China are the leading suppliers of lead in the world. China, India, Japan, US and European Union are the main consumers of lead in the world. Lead is traded mostly as soft lead, animated lead, lead alloys and copper-based lead scrap.

India imports nearly 50 percent of its lead requirement every year. Lead production in India is estimated to be around 82,000 ton, mostly from secondary sources. Lack of any major lead ore deposit is the main constraint for enhancing domestic lead production.

The domestic industry is characterized by the presence of only a few players in the primary segment. The primary lead industry in India is divided between the following main players: Binnani Industries Limited and Saterlite Industries (India) Ltd. (Hindustan Zinc Ltd.). Due to increasing use of lead in domestic market both players are expanding their smelting capacities for lead.

Lead in the global market is traded as soft lead, animated lead, lead alloys and copper-base scrap.

Mcx Gold

Gold...........



Gold prices on Saturday plunged to a six-month low of Rs 30,390 per 10 grams due to brisk selling by stockists on fall in demand amid weak global trend.

After losing Rs 175 in the last two sessions, the precious metal fell further by Rs 235 to Rs 30,390 per 10 grams, a level last seen on August 16 last year.

Bullion merchants said demand for the precious metals dried up after end of the marriage and festive season which normally boost the buying activity.

They said a weak trend in the overseas markets where gold dipped below $1,600 an ounce after Federal Reserve Chairman said the US economy is recovering, also reduced demand for the metals as an alternate investment option.

Meanwhile, the world's largest gold investors offloading their holdings in exchange-traded products backed by gold last quarter, further influenced the market sentiment, they added.

Billionaire investors George Soros and Louis Moore Bacon cut their stakes in exchange-traded products backed by gold last quarter as the prices dropped the most in more than eight years.

With a general weakening trend, silver prices also declined sharply on reduced offtake by industrial units and coin makers.

On the domestic front, gold of 99.9 and 99.5 per cent purity dropped by Rs 235 each to Rs 30,390 and Rs 30,190 per 10 grams, respectively. Sovereigns lost Rs 50 to Rs 25,200 per piece of eight grams.

Silver ready fell by Rs 570 to Rs 56,530 per kg and weekly-based delivery by Rs 1,315 to Rs 56,060 per kg on the lack of buying by speculators.

As the seasonal demand tumbled, silver coins dropped by Rs 2,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.

Mcx copper

copper........




Freeport-McMoRan Copper & Gold Inc. announced today the completion of agreements with two bank syndicates providing committed financing for a $4 billion bank Term Loan and a new $3 billion Revolving Credit Facility in connection with FCXs proposed acquisitions of Plains Exploration & Production Company and McMoRan Exploration Co.

The Term Loan will be drawn at the closing of the acquisitions and may be used to fund the cash portion of the acquisitions, refinancing of certain debt outstanding at PXP and MMR or for general corporate purposes. The Term Loan will mature five years from the date of the first borrowing and will bear interest determined by reference to FCXs credit ratings (currently LIBOR + 1.50%).
In connection with the completion of the Term Loan, lender commitments under FCXs acquisition bridge facilities have been reduced from $9.5 billion to $5.5 billion. In addition, FCX has entered into agreements for a new five-year $3 billion Revolving Credit Facility, which will replace FCXs existing $1.5 billion revolving credit facility on completion of the PXP transaction.
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Aluminum

Aluminium....

Kaiser Aluminum Corp today reported net income of $86 million, or $4.45 earnings per diluted share, for the year ended December 31, 2012 compared to $25 million, or $1.32 earnings per diluted share, for the prior year ended December 31, 2011. Excluding the impact of non-run-rate items, adjusted net income was $74 million, or $3.82 per diluted share, for the full year 2012 increasing approximately 76% from the prior year adjusted net income of $42 million, or $2.20 per diluted share.

Value added revenue was a record $736 million for the full year 2012, up 14% over the prior year, reflecting strong aerospace demand and an improved pricing environment compared to 2011. Adjusted consolidated EBITDA was $174 million, up 56% compared to $111 million in the prior year, setting another new record for the Company in 2012. Adjusted EBITDA margin on value added revenue was 23.6% compared to 17.3% for the full year 2011, reflecting significant year-over-year improvement.
Jack A. Hockema, President, CEO and Chairman said at the occasion that "Our record 2012 results demonstrated a step-change in growth and performance. Strong aerospace and automotive demand, improved pricing, increased overall operating leverage, and improved underlying manufacturing cost performance across our platform drove the significant change in results compared to 2011, the step-change in performance further demonstrates value created from the significant capital investments we have made since 2006 to increase capacity, enhance our capabilities, expand and differentiate our product offering, and improve manufacturing efficiencies.
As we look forward, the underlying fundamentals of our aerospace and automotive end markets provide opportunity for continued long term growth, and we have significant potential to continue to enhance our top line and bottom line operating performance. The recent 20% increase in our quarterly dividend further illustrates our confidence in the Companys long-term prospects."
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Mcx Gold

Gold......



Gold futures were supported above the $1600 an ounce levels in mid Asia session today taking cues from the rally in Asia equities and weakness in the US dollar.
However, strength in the Japanese Yen might hurt the yellow metal. The Japanese currency appreciated against the dollar after comments from Japans Prime Minister Shinzo Abe. He reportedly said Wednesday that the need to set up a public-private fund to buy foreign bonds has declined, sending the yen higher against the U.S. dollar.

The remarks come just two days after Abe had said that the bond purchases -- a controversial move that could potentially weigh on the yen as Japan buys assets denominated in a foreign currency -- were a policy option for the Bank of Japan. The U.S. dollar slid to 93.13 yen, from around 93.42 yen just before Abes comments.
Gold for delivery in April is trading up $3.7 at $ 1607.9 an ounce on the Comex division of the New York Mercantile Exchange. The precious metal fell $5.30, or 0.3%, to settle at $1,604.20 an ounce for its fourth straight loss, although it managed to hold above $1,600 through the trading session.
The settlement was the lowest for a most-active gold futures contract since Aug. 14. Prices lost $26 on Friday, and U.S. markets were closed for Presidents Day on Monday.
On the US economic front later this week, included January housing starts on Wednesday, and the Philadelphia Fed index and leading indicators, both slated for Thursday.
MCX April gold futures opened lower today despite gains in the international counter. It was recently seen trading at Rs 29990 down nearly Rs 65 per 10 grams. The traders may buy it at current levels with the target of Rs 30040 and Rs 30090 and stop loss of Rs 29920. Yesterday, it closed lower by Rs 124 at Rs 30,052 per ten grams. Prices rose to a high of Rs 30,220 per 10 grams and fell to a low of Rs 29,977 per 10 grams during the days trading.
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