Copper and wax

Presented by:Group 1

Group members

• Name Roll no. • Sunny Ahuja 1• Manish Dhalriya 11• Sumeet Kirve 21• Dishant Nagrani 31• Rashmi Santuramani 41 • Shital Ufale 51

Existing commodity: Copper

Introduction• Copper is everywhere – take a minute and

look around you, it’s in what you see and often in what you don’t see. It’s behind the walls of your home, in electrical and telephone wiring. It’s in computers, refrigerators, microwaves and automobiles.

• The average home today contains about 400 pounds of copper for electrical wiring, water pipes and appliances, while the automobile you drive contains about 50 pounds.

Copper Fact

• The Statue of Liberty contains 81.193 kgs of copper. After one hundred years of enduring biting sea winds, driving rains and the beating sun, the copper skin of the Statue of Liberty not only has grown more beautiful, it has remained virtually intact.

Indian Scenario

• Indian Copper Industry is 300 years old.

• India’s production of refined copper.

• The Three Copper Indian companies.

• India’s consumption increased at an annual rate of 6.3% to 540,000 MT in 2011, which accounted for only 2.8% of the world copper market.

Global Scenario• Chile accounts for 34% of total world

copper mine production, USA, China, Australia and Indonesia, together are responsible for 32%.

• Growth in refined copper usage in Aisa.• Major refined copper exporting

countries are Chile, Zambia, Japan and Russia, and while major refined copper importing countries are China, USA, Germany and Italy.

Demand & supply

• In 2011, world mine production continued to under perform and remained at 2010 level.

• On regional basis, refined copper production increased in Africa(11%), Asia(6%) andEurope (4.5%) but decreased in America (-3.5%)

Top Five

Producers Consumers

China ChinaChile United

StatesJapan GermanyUnited States

Japan

Russia South Korea

Factors influencing the market

• Prices are fixed on the basis of:– International Spot market–Rupee v/s Dollar

• Economic events• Government set trade policies• Current economic position

Uses of copper

• Industrial uses• Architectural Uses• Electrical Uses• Transportation Uses• Biological Uses

37%

27%8%

23%5%

TelecomArchitecturalElectricalTransportBiological

Con

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Price calculation of copper in MCX/NCDEX

• FORMULA = (International price)*(USD to INR rate conversion)/(Metric ton to kilogram conversion) INR

• For example:• International price= 8017• USD to INR= 54.47• Where,• 1 metric ton = 1000kgs• Solution : (8017 * 54.47)/ 1000• Answer= Rs. 436.68

Recent prices of copper

News related to copper

• Market demand of copper.

New commodity: WAX

Introduction

• The word "wax" usually refers to a variety of organic substances that are solid at ambient temperature but become free-flowing liquids at slightly higher temperatures.

• Characteristically, they melt above 45°C .

• Wax is insoluble in water

Types of wax

Animal wax:• White and yellow beeswax has been

known for over 2000 years, especially through its use in the fine arts. References to wax prior to the nineteenth century are probably to beeswax. Beeswax is secreted by bees and is used to construct the combs in which bees store their honey. Removing the honey and melting the comb in boiling water harvest the wax.

Plant wax

• The source of plant wax is the palm tree, whose wax-producing stands grow almost exclusively in the northeast section of Brazil. Plant wax forms on the fronds of the palm, and is removed by cutting the fronds, drying, and mechanically removing the wax. Impurities are removed from the wax by melting and filtering.

Petroleum wax

• Petroleum wax is also commonly known as Paraffin wax.

• It is byproduct of crude oil.• Millions of tons of paraffin waxes are

produced annually. They are used in foods (such as chewing gum and cheese wrapping), in candles and cosmetics, as non-stick and waterproofing coatings and in polishes.

Why wax should be listed?

• Lubricate wood screws• Seal cork on wine bottles• Water proof thread• Lubricate zippers• Candle making• Wax museums• Wax stamps

Contract specifications • Symbol WAX• Contract Start Date 2012-07-02• Last Trading Date 2013-03-01• Lot Size 1MT• Tick Size 50 Paisa per Kg.• Symbol Description Wax• Delivery Start Date 2013-03-01• Delivery End Date 2013-03-05• Symbol Info WAX EX

BHIWANDI

• Tender Period Start Date 2013-03-01

Contd…

Tender Period End Date 2013-03-02Commodity Group IndustrialName Of Underlying Crude OilExpiry Date 2013-02-28Price Quote Unit KGPrice 15Trading Unit MTTrading Unit Factor 1000Delivery Unit MT

Challenges of wax

• Transport• Season• Warehousing

Thank you

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