As a result, India exported over 10 tonnes of gold to Dubai, which is the traditional source of India’s imports. India’s the world’s largest importer and consumer of gold.

With February and March seeing India’s gold imports coming down to zero level, April may witness a rise in imports following the yellow metal’s downfall in the global markets.

Gold prices have come down in the past one week in international markets and the demand for the metal is expected to go up in India with the onset of festivals.

India’s gold imports was 20 tonnes in the first quarter of 2009 as compared to 141.2 tonnes in the corresponding quarter last year.

Another factor which will boost the Indian imports of gold is that the banks in the country have hardly any stock of gold to sell now. According to experts, Indian banks have just 6 tonnes of gold with them which is not even enough for two days’ consumption in the country.

India has been witnessing a surge in scrap gold sales following the rise in gold prices in the recent past and old gold was fetching good money for people. Moreover, job losses and other recession related reasons were forcing people to sell old gold.

But, the scrap gold sales have also come down in India now following the slump in prices.

The average old gold arrival in shops during the past few weeks was at 500 kg but tat has climbed down to around 200 kg level now.

Another factor which will boost gold sales in India in the coming months is World Gold Council’s (WGC) increased efforts to lift the sales.

Gold prices were quoted at $877 an ounce in London (Rs 14,170 per 10 gram) on Monday.

Last year, India imported 740 tonnes of gold. The demand of gold will revive in the days to come if the price retains this level at least for one week, said experts.

Standard gold price in Mumbai spot market fell 2.3 per cent on Monday to close at Rs 14,250 per 10 gm despite the metal moved range-bound at $877 in London. The precious metal fell 6 per cent in the domestic and 4 per cent in the international market.

One reason for the slump in gold prices is the revival of equity markets across the globe, following the G20 announcement of stimulus package worth $1.1trillion.

Gold prices in Mumbai market had hit an all-time high on February 20 at Rs 16,040 per 10 gm, up 34 per cent on the year.

Source: www.commodityonline.com

It now looks that recession has cast a long shadow over shipping business too which includes cruises. This can be seen from the arrivals at Alang, which has about 125 vessels from the international shores lined up for ship breaking this year had only 40 vessels in the whole of last year for ship breaking.

The increase in the ship breaking activity is believed be fallout of the shrinking export-import business and falling freight rates.

According to estimates, more than 600 ships are available for breaking in the international market due to the present recessionary scenario. Each of these ships weighs about 10,000 tonnes to 30,000 tonnes depending upon the capacity. In the wake of this fact, the ship breaking yard is estimated to recover nearly 12 lakh tonnes of scrap steel this year, which is almost double than the previous year.

With the increased availability of scrap steel, which is cost-effective input for rolling mills, the small mills would be able to reduce rebar price. However, as per the latest data released by Joint Plant Committee, Ministry of Steel, Indian consumption of finished steel during April 2008 to January 2009 was 42.321 million tonnes down by 2% YoY as compared to 43.175 million tonnes in April 2007 to January 2008, which may create a negative sentiment for the steel prices in coming days.

In addition to it, with government’s proposal to allow HRC imports without licensing requirements may lead to a further fall in the domestic steel prices. However, experts believe that there would be a positive run in the steel sector during next few weeks as there is a positive feeling among the investors on the basis of Central Government’s directions to the state governments to speed up development related infrastructure projects to combat unemployment and job loss.

Steel ingots February contract surged by 0.4% to Rs.22710/MT as short covering was observed in the market, while LME 3M forward steel billets remained unchanged at USD 310 a tonne. The steel stocks stayed firm on the Indian bourses.

Source: www.commodityonline.com

Gold markets in many cities opened on Sunday, as Monday January 26 is a holiday in India. India celebrates its Republic Day on January 26. Several jewellers said gold price rose to a record high of Rs 14,150 per 10 grams. Gold prices rose by Rs 450 per 10 grams compared to the market price on Saturday.

“Gold prices have touch a historic high in India today. We have sold gold for Rs 14,150 per ten grams today. This is celebration day for Indian gold market and gold investors,” Kanwar Singh, a gold jeweller in Chandni Chawk, a bustling market in India’s national capital New Delhi, told Commodity Online.

However, Singh said high gold prices could bring down the sale of the yellow metal in coming days. “Surging prices may prevent buyers of gold to wait to see if the yellow metal price would come down for investment,” he said adding: “But those who purchased gold at price levels of Rs 10,000 around this time last year, it has been a terrific year of profit in gold.”

India is the largest consumer of gold in the world. Analysts said gold prices have gone up to such dizzy heights in India because of the continuing rise in the prices of the yellow metal in the international market thanks to the global economic meltdown.

Gold prices in New York and London has crossed US $ 900 an ounce on Friday, after touching a session high of 902.50 dollar, the highest since October 8. A steep fall in stock markets globally forced jittery investors to park their funds in the the precious metal.

Traders said a steep rise in the commodity markets globally led by the crude oil and copper also supported the trading sentiment in the world bullion markets.

Dollar-denominated gold, whose price generally moves inversely with the greenback, was in step with the prices of base and precious metals, following rising concerns of recession and economic slowdown in domestic markets.

The run-up in gold came despite the dollar’s spike to a 23-year high against sterling and a six-week peak against the euro.

Source: www.commodityonline.com

Old Mixed Aluminium 30.65 40.86 Kg. INR
Old Yellow Brass 93.79 156.94 Kg. INR
No.2 Scrap Copper 236.81 250.74 Kg. INR
Mixed Lead 37.15 62.22 Kg. INR
Nickel Scrap 499.62 665.84 Kg. INR
No.2 Steel 16.38 20.48 Kg. INR
Stainless Scrap 65.93 88.22 Kg. INR
Old Mixed Zinc Scrap 22.29 45.50 Kg. INR

The September contracts for Lead is unchanged at Rs 95.05 per kg. The Nickel contracts for September is up at Rs 815 per kg, a gain of 0.57 per cent.

September copper fell 8.30 cents to $3.5785, pressured by a slow U.S. economy and possible signs of slowing in China.

An index of manufacturing in China fell from 52.0 to 48.4 in July, the first sign of contraction since records began in 2005.

Also, London inventories of copper were up 2,250 tons today to 144,650 tons, but still down from 197,450 tons at the start of 2008.

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The prices of steel products are likely to increase in August, said JSW Steel’s Vice Chairman and Managing Director Sajjan Jindal declining to divulge further about the hike.

Steel producers had rolled back prices of flat products by Rs 4,000 a tonne and Rs 2,000 per tonne for structural steel last May and promised to hold prices for three months ending the first week of August in order to help the Government to rein in runaway inflation.

At the same time, the price of raw materials, mainly coal and iron ore, for the steel industry has shot up by around 10 per cent in the last three to four months. Domestic steel prices are 15,000 to Rs 20,000 lower than international prices now, according to steel makers.

“The rise in input cost could be absorbed for some time, but it persists many projects will be unviable. The growth of the industry will hamper. If the industry does not make money then they will not be having surpluses for reinvest and the projects will slow down,” Jindal said.

India currently produces around 59 million tones of steel a year. The Government estimates it to go up to 124 million tones in the current plan period ending 2012.

“Metals had a relatively poor second quarter, with most losing ground. This is in contrast to other commodities, some of which had a storming Q2. Is a slowing global economy beginning to feed through into metals, and what are the
prospects for the rest of the year?” asks the Fortis Metals Monthly jointly brought out by Virtual Metals and Fortis Bank.

The analysis says that global crude oil rally has eaten into consumer spending because of firmer interest rates resulting credit squeeze and higher unemployment.

The recent long-sustained boom in metals prices ground to a halt in Q2 2008, with many of those featured in this report registering substantial falls against Q1.

Except aluminium, platinum and palladium most metals including gold prices will turn to negative over a 12-month period (June 2009), the report said. Aluminium prices will rise 12.1%, platinum 6.6% and palladium 2.8 percent. Among the worst performers could be zinc prices which could fall 21.5%, lead 15%, tin 14.5% and copper 12.6%. Here is the synopsis on metals prepared by Fortis Metals Monthly.

Gold :Gold.s fantastic finish in June took prices to levels not seen since April. Much of it was to do with the dollar, but inflationary pressures are also helping. Gold typically does well in economic turbulence . and central bankers seem united in
their conviction that tough times lie ahead.

Silver: It was no surprise that silver was again dragged higher by gold. This pattern is now well established but a slowing global economy will take a heavier toll on it than the yellow metal.

Platinum: Platinum remains solidly supported by the risk of another supply crunch from South Africa. Against that, the very high premium of diesel versus gasoline in most western markets will deter car buyers from purchasing diesel-engine
vehicles, and that will slow autocatalyst offtake.

Palladium: The market continues to price palladium higher on the view that the metal’s years of excess supply are coming to a rapid end. The data is inconclusive and is likely to remain so for some time to come. Demand is at risk from a global
slowdown, but where platinum loses in autocatalysts, palladium will benefit as more drivers reconsider the merits of gasoline-engines.

Aluminium: China.s electricity supply problems worsened considerably in early July and 12 provinces (out of 22) are now rationing power. It emerged on 10th July that 20 of  China.s biggest aluminium smelters agreed to cut primary metal production in  July by as much as 10%, which pushed the LME price to a fresh record. Kaiser Aluminium.s decision to start charging new customers a sliding-scale electricity  surcharge on fabricated aluminium products is a real sign of the times. Higher energy costs are hurting all metals. producers, but aluminium is most exposed.

Copper:The price has remained remarkably strong despite growing evidence that China.s refined copper imports are very sluggish indeed. In the very long term copper no doubt has a strong demand profile, but right now there is little fundamental support for such elevated prices.

Nickel: BHP Billiton sprung a surprise in June by bringing forward a planned maintenance shutdown of a smelter and refinery. This propped up the sagging price and reminded everyone of nickel.s continuing fragile supply-side picture.

Lead and zinc: The speculative bubble in lead has well and truly popped, while in zinc the expanding global supply is dragging the price ever lower. Further weakness ahead is likely for both metals.

Tin
We may now have a clearer picture as to the intentions of Indonesia regarding its tin export policy. On the other hand the plethora of contradictory signals that have emerged from that country regarding its tin industry have left the market
dizzy. All that can be said for certain is that so far this year Indonesian exports have been very low, and China.s demand very strong . this may be the story for the rest of the year; in which case the price should hold above $20,000/t, although slower economic growth might rock that.

Steel
The LME.s newest contracts have yet to gather momentum; volumes remain relatively low but at least they have been launched into a buoyant market, with long-term world demand likely to grow substantially, and input costs (iron ore
and coking coal) soaring.

Plastics
Plastics are nakedly exposed to the high crude oil price; prices are soaring and this will accelerate the drift towards more production heading to Asia.

Meanwhile, some analysts have already commented that commodity cycle already may have peaked in 2008 and prices could move southwards due to reduced demand. Gold, ofcourse, could breach the barrier depending on dollar value. ]]> http://scrapmetalpricesandauctions.com/2008/07/india-metals-lose-lustre-in-q2-aluminum-shines/feed/ 0 http://scrapmetalpricesandauctions.com/2008/07/production-cost-may-lift-aluminium-prices/ http://scrapmetalpricesandauctions.com/2008/07/production-cost-may-lift-aluminium-prices/#comments Wed, 09 Jul 2008 15:16:03 +0000 admin http://scrapmetalpricesandauctions.com/2008/07/production-cost-may-lift-aluminium-prices/ Production cost may lift aluminium prices

Source: Commodity Online
NEW DELHI: Rising energy prices may push up aluminium prices to new heights across the globe.

According to analysts, however, rising production and stocks and slowing demand may not allow the commodity keep the lofty levels for long time.

The metal used in power, transport and packaging hit a four-month high of $3,229 a tonne on Thursday, less than $100 from the record high of $3,310 a tonne hit in May 2006.

Market watchers said the cost of production has been exploding in the last few years, mostly due to the high electricity costs. Costs of production will offer strong support for aluminium prices in the future.

Analysts estimate that up to 45 per cent of aluminium smelting costs — around $2,600 a tonne — are accounted for by power, prices of which have been rising around the world.

Some analysts doubt whether levels above $3,000 a tonne can be maintained, given rising production in China and other parts of the world.

Aluminium is actually well supplied. If one looks at inventory levels, one would not see supply tightness, there’s plenty of material available.

Analysts estimate Chinese capacity to produce aluminium this year will rise to about 15 million tonnes from 12 million tonnes last year. Global output this year is expected to total 40 million tonnes.

Stocks of aluminium in London Metal Exchange warehouses have more than doubled since November 2005 to above a million tonnes.
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