Basemetals Commodities Report June 2015

From MCX Report 

Weak global demand outlook pushed metal prices down.

• Copper

– MCX copper June 2015 futures contract declined 4.64% in

June to close the month at Rs.368.70 per kg.

– Slowdown in Chinese trade (i.e. fall in the country’s imports

and exports in May) and a slump in investment growth,

dented copper demand and pushed prices down.

– The continuous uncertainty surrounding the Greece

bailout, and hence, the future of Greece in euro zone,

roiled markets and added to the decline in copper prices.

• Nickel

– MCX nickel June 2015 futures contract fell by 8.11% in

June, closing the month at Rs.742.50 per kg.

– Seasonal slowdown in nickel buying by Chinese steel mills

(major nickel consumers) and record high inventories at

LME-monitored global warehouses pushed nickel prices

down.

– Greece’s debt crisis undermined confidence in the global

growth outlook; while SHFE decided to accept nickel from

overseas producers against its futures contract, easing

concerns about potential domestic shortages. These aided

a price decline of the commodity.

• Aluminium

– MCX aluminium June 2015 futures contract closed June at

Rs.104.85 per kg, registering a monthly fall of 4.77%.

– Concerns over global glut and China’s economic growth,,

and proposed changes in LME warehouse rules dampened

incentives to finance aluminium, pushing prices down.

– Mounting turmoil in Greece dented European demand

outlook and kept aluminium prices under pressure.

• Lead

– MCX lead June 2015 futures contract fell 10.37% in June,

with a month-close at Rs.111.55 per kg.

– Continuing with the trend seen in other base metals, lead

prices too traded down on weak global demand outlook

and rise in LME lead inventories.

– Additionally, a stronger dollar and provisional ILZSG data

suggesting that supply outpaced demand in Q1 2015 kept

lead prices under pressure.

• Zinc

– MCX zinc June 2015 futures contract fell by 9.17% in June,

with a month-close at Rs.126.80 per kg.

– Unexpected increase in supply from two mines (Skorpion

mine, Namibia, and processing of ore from Dugald River

project, Australia) kept prices on the downtrend.

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