Coking Coal, Iron Ore and Copper makes Nifty Metal shine
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Nifty Metal gained approximately 2 per cent yesterday from closing at Rs. 2793.80 on 9th January 2017 to closing at Rs. 2833.90 on 10th January 2016. The index had been the top gainer past week gaining approximately 5 per cent from Rs. 2705.25 on 2nd January 2017 to Rs. 2833.90 on 10th January 2017.
The price of copper surged to its highest level in a month, enhanced by strong Chinese economic data, a weaker US dollar and concerns about supply.
Copper for delivery in three months on the London Metal Exchange surged $165, or 3 per cent, to $5,755 a ton, extending gains since the start of the year to almost 5 per cent, on news that China’s producer prices had increased in December.
Of late Copper, used in everything from wiring to power grids, has been the surprise package of commodity markets. After lagging behind other raw materials it bounced back at the end of last year, as investors started to pick apart assumptions about the outlook for the metal. It ended 2016 up 17 per cent, snapping three consecutive years of losses.
Hindustan Copper holds the pride of being the country’s only integrated copper producing company encompassing casting, refining, smelting, beneficiation and mining of refined copper metal. Hindustan Copper share price moved up to Rs. 67.85 on 10th January 2017 from Rs. 64.55 on 9th January 2017, gaining over 5 per cent.
The Northern China import price of 62% Iron ore added 3.2% to $80.10 per dry metric ton, a three-week high as per the data supplied by The Steel Index. Copper futures trading on New York Comex surged nearly 10c to a day high of $2.63 per pound ($5,798 a ton). The bellwether metal is now up 36% from close to six-year lows struck this time last year. Iron ore was also lifted by news that China's Hebei province, the country's steelmaking center, is set double steelmaking capacity cuts from 2016 to more than 30m tons this year.
Stocks In focus:
Tata Sponge share price gained approximately 2 per cent yesterday while it is up by over 4 per cent today at NSE at Rs. 627.10. Tata Metaliks share price gained over 7 per cent at Rs. 368.90 today.
Global Coking Coal prices surged from $92/tonne in Q2FY17 to $200/tonne in Q3FY17, which escorted Nifty50 to reclaim 8,250 mark after two months, on January 10. In Q3FY17, Indian steelmakers will enjoy some support from sharp increase in imported coking coal costs led by deferred low priced inventories. Higher base metal prices will help improvement in earnings of non-ferrous names in Q3FY17.
Tata Metaliks has also gained from the rising coke prices. Rain Industries share price gained almost 2 per cent today.
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- Way2wealth's Daily Commodity Note
- SMC Commodity Report (Agri)
- Dynamic Levels: Support and resistance levels for Commodity Trading (19 Apr'16)
- Monthly report on Base Metals for October 2015
- Commodity update: Steel product prices weak, NMDC cuts iron ore prices by INR200-450/t
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