SMX Markets Brief June06 2012 Edition
2
June 5, 2012 www.smx.com.sg Disclaimer: The information and contents (the ‘Contents’) are provided without warranties of any kind. SMX and/or its officers and employees do not warrant and hereby disclaim any warranty as to the accuracy, correctness, reliability, correctness, timeliness, non-infringement, title, merchantability or fitness for any particular purpose of the Contents. SMX and/or its officers and employees shall not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the Contents, including but not limited to any damage or loss suffered as a result of reliance on the Contents. The Contents do not constitute professional advice or provision of any kind of services and should not be relied upon as such. SMX and/or its officers and employees do not make any recommendation and assume no responsibility towards any investments or trading in commodities or commodity futures done based on any information given in the Contents and any such investment or trade is subject to investment and commercial risks for which SMX and /or its officers and employees shall not be responsible. If financial, investment or any other professional advice is required, please seek the advice of competent professionals. Exchange Updates • SMU student Song Jiashun Marc wins first ever SMX Trading Championship Read More May 21, 2012 • Launch of India Gold (E-Gold) Futures Contract Read More May 25, 2012 • Minimum Initial Margin & Spread benefit on India Gold (E-Gold) Futures Read More May 25, 2012 Volume Growth and Price Trends of Key Products Concerns about weakening copper demand from China and renewed euro zone debt fears continued to pressurize copper prices. The July 12 contract fell 4.4% to close at USD 7,419 on May 31, against the previous fortnight close of USD 7,756. The HSBC Flash China Manufacturing PMI fell to 48.7 in May from 49.3 in April, reaching a 2-month low and indicating continuing contraction in manufacturing activity. Market sentiment was further tempered by news from China’s official June 6, 2012 The reduced appetite for iron ore was mainly due to sluggish growth in downstream Chinese domestic demand and imbalances in supply and demand in the steel market. According to the Financial Times, China’s economic slowdown has recently resulted in deferrals and defaults of iron ore contracts by Chinese consumers. Iron ore ports stockpiles in China (comprising 25 major sea ports) dropped to 97.2 million metric tons in the week ending May 28. This level was a 0.8% decrease over the previous week. Over USD 2651.54 Mn turnover seen over last fortnight Quick Facts 91,109 contracts traded in the last fortnight Xinhua News Agency that Beijing had no plans for extensive stimulus measures. Renewed euro zone debt fears, underlined by Spanish banking problems, added to the downward bias of base metals prices during the past fortnight. $137 $136 $135 $134 $133 $132 $131 $130 SMX MBIO Index Futures in Lots in U S Dollars 2300 2100 1900 1700 1500 1300 1100 900 700 500 5/16 5/17 5/18 5/21 5/22 5/23 5/24 5/25 5/28 5/29 5/30 5/31 Spot Price Near Month Close Daily Volume 2400 2200 2000 1800 1600 1400 1200 1000 $8,000 $7,900 $7,800 $7,700 $7,600 $7,500 $7,400 SMX Copper Futures in Lots in U S Dollars MB High Grade cathode Spot Price Near Month Close Daily Volume Highlights • SMX MBIO Index futures volume hits a record on May 21, 2012 with 2,280 lots traded with a value of USD 30.3 Mn • Over 1.5 Mn metric tons with a value of USD 200 Mn of Iron Ore (SMX MBIO Index futures) traded in the past fortnight • SMX Copper futures traded 26,115 lots in the past fortnight with a value close to USD ONE Billion. • The highest daily volume observed in the SMX Copper futures were 2,336 lots with a value of USD 80.84 Mn 5/16 5/17 5/18 5/21 5/22 5/23 5/24 5/25 5/28 5/29 5/30 5/31
Transcript of SMX Markets Brief June06 2012 Edition
June 5, 2012
w w w . s m x . c o m . s g
Disclaimer: The information and contents (the ‘Contents’) are provided without warranties of any kind. SMX and/or its o�cers and employees do not warrant and hereby disclaim any warranty as to the accuracy, correctness, reliability, correctness, timeliness, non-infringement, title, merchantability or �tness for any particular purpose of the Contents. SMX and/or its o�cers and employees shall not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the Contents, including but not limited to any damage or loss su�ered as a result of reliance on the Contents. The Contents do not constitute professional advice or provision of any kind of services and should not be relied upon as such. SMX and/or its o�cers and employees do not make any recommendation and assume no responsibility towards any investments or trading in commodities or commodity futures done based on any information given in the Contents and any such investment or trade is subject to investment and commercial risks for which SMX and /or its o�cers and employees shall not be responsible. If �nancial, investment or any other professional advice is required, please seek the advice of competent professionals.
Exchange Updates
• SMU student Song Jiashun Marc wins �rst ever SMX Trading Championship Read More May 21, 2012
• Launch of India Gold (E-Gold) Futures Contract Read More May 25, 2012
• Minimum Initial Margin & Spread bene�t on India Gold (E-Gold) Futures Read More May 25, 2012
Volume Growth and Price Trends of Key Products
Concerns about weakening copper demand from China and renewed euro zone debt fears continued to pressurize copper prices. The July 12 contract fell 4.4% to close at USD 7,419 on May 31, against the previous fortnight close of USD 7,756.
The HSBC Flash China Manufacturing PMI fell to 48.7 in May from 49.3 in April, reaching a 2-month low and indicating continuing contraction in manufacturing activity. Market sentiment was further tempered by news from China’s o�cial
June 6, 2012
The reduced appetite for iron ore was mainly due to sluggish growth in downstream Chinese domestic demand and imbalances in supply and demand in the steel market.
According to the Financial Times, China’s economic slowdown has recently resulted in deferrals and defaults of iron ore contracts by Chinese consumers.
Iron ore ports stockpiles in China (comprising 25 major sea ports) dropped to 97.2 million metric tons in the week ending May 28. This level was a 0.8% decrease over the previous week.
Over USD 2651.54 Mn turnover seen over last fortnight
Quick Facts
91,109 contractstraded in the last fortnight
Xinhua News Agency that Beijing had no plans for extensive stimulus measures.
Renewed euro zone debt fears, underlined by Spanish banking problems, added to the downward bias of base metals prices during the past fortnight.
The reduced appetite for iron ore was
downstream Chinese domestic demand and imbalances in supply and demand in the steel market.
According to the Financial Times, China’s economic slowdown has recently resulted
contracts by Chinese consumers.
to 97.2 million metric tons in the week
$137
$136
$135
$134
$133
$132
$131
$130
SMX MBIO Index Futures
in L
ots
in U
S D
olla
rs
2300
2100
1900
1700
1500
1300
1100
900
700
500
5/16
5/17
5/18
5/21
5/22
5/23
5/24
5/25
5/28
5/29
5/30
5/31
Spot Price Near Month Close Daily Volume
2400
2200
2000
1800
1600
1400
1200
1000
$8,000
$7,900
$7,800
$7,700
$7,600
$7,500
$7,400
SMX Copper Futures
in L
ots
in U
S D
olla
rs
MB High Grade cathode Spot Price Near Month Close Daily Volume
Highlights
• SMX MBIO Index futures volume hits a record on May 21, 2012 with 2,280 lots traded with a value of
USD 30.3 Mn
• Over 1.5 Mn metric tons with a value of USD 200 Mn of Iron Ore (SMX MBIO Index futures)
traded in the past fortnight
• SMX Copper futures traded 26,115 lots in the past fortnight with a value close to USD ONE Billion.
• The highest daily volume observed in the SMX Copper futures were 2,336 lots with a value of
USD 80.84 Mn
5/16
5/17
5/18
5/21
5/22
5/23
5/24
5/25
5/28
5/29
5/30
5/31
June 6, 2012
Product Launch
Singapore Mercantile Exchange Pte Ltd1 Temasek Avenue #23-02 Millenia Tower Singapore 039192 Tel: +65 6590 3700 | Fax: +65 6532 2773 | Email: [email protected] | Website: www.smx.com.sg
Associations / Partnership
SMX E-Gold Futures
• Re�ection of the Indian Gold price in USD terms
• Goal is to deliver Asian pricing to the global market from Singapore
• Unique way of hedging based on Indian Gold market for global Gold ecosystem
Attributes of SMX E-Gold Futures
• Convenient smaller trading unit for retail participants
• Finer price increment of 5 US cents for pricing e�ciency
• Ideal product for hedging exposure in the biggest market by minimizing basis risk
• Hedging & Pricing bene�t for initial 2 ½ hours, since India market opens at 1230 SGT
• Hassle-free settlement without inconvenience of physical delivery
• Arbitrage between Indian prices and global Gold prices
For more information on SMX E-Gold, please visit http://www.smx.com.sg/Products/EGoldFutures.aspx
Membership
SMX o�ers a number of membership options to suit the varying needs of market
participants worldwide.
This fortnight the focus is on the Trade Member (Associate) category which was
introduced last month. Key Requirements and Bene�ts of this category include:
• Only available to individuals who are Citizens or Permanent Residents of Singapore
• Entitled to trade for their own account only
• No minimum capital requirement, but applicants should be of good �nancial standing
• Annual subscription fee-based structure with zero admission fee
• Lower exchange trading and clearing fees
For more information on Membership, please contact [email protected] or visit http://www.smx.com.sg/membership/BeMember/index.aspx
Training and Education
The SMX Boot Camp is conducted by subject matter experts from the Exchange every Friday between 4 pm and 6pm.
The 2 hour fundamental course includes:• Fundamentals of Futures Trading • Trading Session on personal trading terminal• Risk Management • Products & Features • Participating on SMX
Venue: SMX Training Centre, 1, Temasek Avenue, #23-02, Millennia Towers, Singapore 039192. To register click here
