Page 2 - MEX Express - Vol 6 Issue 4

www.mexnepal.com FACTS AND FIGURES
Market Capitalization - Futures Contracts Know Your Commodities
From October 2014 - December 2014 (in%)
Natural Gas
Market Capitalization of all the future contracts listed in the MEX Introduction
terminal. Gold has the maximum capitalizaiton followed by Coffee &
Micro Gold. Natural Gas is a prime source of
energy and is considered as one of the
Market Capitalization - Spot Contracts cleanest, safest and most useful sources
From October 2014 - December 2014 (in%) of non-renewable resources of energy.
It’s a gas which contains methane.
Market Capitalization of all the spot contracts listed in the MEX Before natural gas can be used as a fuel,
terminal. Nano Gold continues to have the maximum capitalization it must undergo extensive processing to
followed by Nano Silver and Mini Gold. remove almost all materials other than
methane. It has its properties and
functions similar to oil. Some of the
major applications of natural gas are:
• Fuel source for power generation
• Used for cooking
• Industrial uses: fuel source for
boilers, ovens, air conditioners etc.
• Production of petrochemicals like
methanol etc.
• The other fraction obtained in
natural gas processing like butane
and propane is used in manufacturing
of LPG.
Fundamental Facts
• Fundamental factors that affect
natural gas demand and supply, such
as seasonality, weather events,
storage changes, demand and supply
shocks, are all drivers that determine
natural gas price dynamics,
especially in the short term.
• Fuel switching between natural gas
and residual fuel oil makes natural
gas prices move closely with crude
oil price, but these two energy
commodities are not perfect
substitutes to each other.
• Politics and the environmental
policies of the major producing and
consuming countries also alter the
price significantly.
• It is found that market fundamentals
overall have larger impacts in
bullish market than in bearish
market for natural gas.
Major Market Movers for Natural Gas & Palladium (1st October-31st December 2014)
400 Natural Gas
350
300
250
200
150
100
50
0
Prices
10/1/2014
10/27/2014
11/8/2014
11/14/2014
11/20/2014
12/8/2014
12/31/2014
Note: Note:
News
Date Opening price as of 1st October 2014 Date
10/1/2014 Record high natural gas production 10/1/2014
10/27/2014 Higher demand because of winter 10/5/2014
11/8/2014 Storage rose to 3,299 billion cubic feet (Bcf) 10/9/2014
11/14/2014 Mid-November cold spell boosts natural gas prices 10/16/2014
11/20/2014 Average temperatures in many locations reduced its price 11/3/2014
12/8/2014 Closing price as of 31st Decemeber 2014 11/6/2014
12/31/2014 12/12/2014
12/16/2014
12/31/2014
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Some Interesting Facts
• Natural gas is thought to have been
first discovered in the Middle East
between 6000 and 2000 BC when
lightning strikes ignited natural gas
seeping from the ground.
• If all the natural gas pipelines in the
U.S. were connected to each other
they would stretch to and from the
moon almost three times. In fact,
according to the Energy Information
Administration, there are 300,000
miles of intrastate and interstate
natural gas transmission pipelines in
the United States.
• From November to March,
consumers get 15-to-20 percent of
their natural gas from stored gas,
according to the American Gas
Association.
• Natural gas serves nearly 66 million
homes; 5 million businesses like
hotels, restaurants, hospitals,
schools and supermarkets;195,000
factories; and 1,900 electric
generating units. On a daily basis,
the average U.S. home uses 168
25000
20000
15000
10000
5000
0
Prices
News
Opening price as of 1st October 2014
Low demand dorm chinese industries
Norilsk Nickel‘s purchase of US$2 billion palladium
Slower economic growth in China
Strong car sales, SA troubles set palladium price up
US economy stays on track and the dollar remains strong
Strong demand from US and China auto makers
GDP and CPI data out across Europe plus US data
Closing price as of 31st Decemeber 2014
www.twitter.com/mexnepal
Volume: 6 • Issue: 4 • Year: 2014 A.D
cubic feet of natural gas.
• There are approximately four million
Americans employed either directly
or indirectly by the natural gas
industry - America’s ‘Blue Jobs.’
• There are over 11 million road
vehicles worldwide that run on
natural gas as a fuel. The gas is used
in a compressed or liquefied state to
power cars, buses, taxis, and trucks.
• According to the Energy Information
Administration and the Potential Gas
Committee, the U.S. estimated
future supply of natural gas stood at
2,718 trillion cubic feet (Tcf) at year
end 2012 – enough to meet America’s
energy needs for more than 100
years.
Natural Gas @ MEX
• Natural Gas has been trading initially
in the futures platform and later on
the spot contracts in the MEX
platform.
• Natural Gas is the energy available
for trading in the MEX terminal at
present with initial margin of Rs.
60000 for 2500 MMBTU.
Palladium
10/1/2014
10/5/2014
10/9/2014
10/16/2014
11/3/2014
11/6/2014
12/12/2014
12/16/2014
12/31/2014
Page 02