Page 2 - MEX Express - Vol 6 Issue 3

www.mexnepal.com FACTS AND FIGURES Volume: 6 • Issue: 3 • Year: 2014 A.D
Market Capitalization - Futures Contracts
From July 2014 - September 2014 (in%) Know Your Commodities

Copper

Market Capitalization of all the future contracts listed in the MEX Introduction Fundamental Facts in Asia & Africa, political instability
terminal. Gold has the maximum capitalizaiton followed by Micro Gold • The major exporters of copper hampers the price.
& Crude Oil. Copper is a metal that has been are Chile, Peru, Australia and Canada. So
known to the world since ancestral times. any news regarding the production pattern • Drastic changes in the weather
Market Capitalization - Spot Contracts From 8,700 BC, copper has been mined from these counties will affect the copper conditions also contribute to the price
From July 2014 - September 2014 (in%) and worked continuously in different price. change as the productions and the transport
countries i.e. West Africa to China to • On the contrary, China, Japan, of copper is affected. A case in point was
Market Capitalization of all the spot contracts listed in the MEX Europe to Central and South America. It India, Korean Republic is the top most the earthquake in Chile in 2010, which
terminal. Nano Gold continues to have the maximum capitalization is one of the best electrical conductors, importers of copper. The demand patterns affected the country’s production and the
followed by Nano Silver and Brent Crude. and its existence has helped to tie the from these countries also influences the export from the country thereby leading to
world together in telecommunication. price of copper. inflating prices in the global markets.
Copper is also used to create alloys in
combination with other metals like zinc, • China being the largest copper • Copper is infinitely recyclable.
bronze, aluminum etc. Light red in color consumer, the Chinese currency, Yuan, Approximately one-third of the copper
and easily oxidized to a affects the price of copper. consumed worldwide is recycled.
gritty green hue, copper
can be useful to serve many purposes • As a commercial metal, copper • Copper was first used
such as Building/ Construction (50%), is mostly used in the housing, automotive decoratively, its color and malleability
Engineering (24%), Electrical (17%), and electrical industries. Therefore, making it easy to form ornaments and
Transportation (7%) and Miscellaneous any changes from the major economies jewellery. It is one of vital constituent of
Uses (2%). The top 5 producers in the regarding the aforementioned industries carat silver and gold.
year 2013 were Chile (Mine production: will influence the prices drastically.
5,700,000 tons), China (Mine production: Copper @ MEX
1,650,000 tons), Peru (Mine production: • As copper is produced in most
1,300,000 tons), United States (Mine part of the world, various factors hamper • Copper has been trading initially
production: 1,220,000 tons) and Australia the price. In North and South America, in the futures platform and later on the
(Mine production: 990,000 tons). labor conflict affects its price whereas spot contracts in the MEX platform.

Major Exporters & Importers of • Copper is the only base metal
Copper-2013 available for trading in the MEX terminal
at present.
Exporters Importers
• Investors in MEX have been
1. Chile 1. China trading regularly in copper withstanding
the influence of its more illustrious
2. Peru 2. Japan competitors including gold, silver and
crude oil.
3. Australia 3. India

4. Canada 4. Korean Rep.

5. Indonesia 5. Spain

6. United States 6. Germany

7. Brazil 7. Bulgaria

8. Spain 8. Brazil

9. Mexico 9. Finland

10. Mongolia 10. Philippines

Source: International Copper Study Group (ICSG)

Major Market Movers for Copper & Crude Oil (1st July-30th September 2014)

Copper Crude Oil

600 8000
500 7000
400 6000
300 5000
200 4000
100 3000
2000
0 1000

0
Prices Prices

Note: 7/1/2014 Note: 7/1/2014
7/8/2014 7/15/2014
Date 7/18/2014 7/22/2014
7/1/2014 7/25/2014 8/21/2014
7/8/2014 8/14/2014 8/30/2014
7/18/2014 8/25/2014 9/11/2014
7/25/2014 9/3/2014 9/16/2014
8/14/2014 9/8/2014 9/22/2014
8/25/2014 9/30/2014 9/30/2014
9/3/2014
9/8/2014 News Date News
9/30/2014 Opening Price as of 1st July 2014
Upbeat Chinese Manufacturing Data 7/1/2014 Opening Price as of 1st July 2014
European Industrial Production fell by 1.1%
Chinese Manufacturing Activity rises to 18 month high 7/15/2014 Libya Increases Oil Output
Chinese PMI fell to 50.0
Growing Optimism from US Economy 7/22/2014 Escalating Tensions in Ukraine and MENA Region
Growing Concern of Chinese Economy
Strengthening of US Economy 8/21/2014 Increased Supply from Iraq
Closing Prices as of 30th September 2014
8/30/2014 USA decreases supply by 2.1 Million Barrels

9/11/2014 Rate Cuts from ECB

9/16/2014 Better-than-expected USA Empire State Manufacturing

9/22/2014 Weak Economic Data from China

9/30/2014 Closing Prices as of 30th September 2014

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