India enhances import tariff value of gold to $573, silver to $1145

NEW DELHI (Commodity news world ): India Government has enhanced the import tariff value of gold from $526 per 10 grams to $573 per 10 grams while the value was enhanced from $953 per kg to $1145 per kg for silver imports.

This was announced in notification by Central Board of Excise and Customs (CBEC) under Ministry of Finance issued on February 29, according to an official release. In January this year, the government had notified ad valorem based import tariff for gold and silver at 2% and 6% respectively as against the previous flat rate of Rs 300 per 10 gm and s 1500 per kg respectively fo gold and silver.

Increase in tariff value and tariff was effected with the twin objective of preventing under-invoicing of imported precious metals and discourage import of gold to ease pressure on balance of payments. After crude oil, gold is the most imported commodity in India in terms of value.

However, the recent hikes in tariff value were opposed by bullion traders and jewellers as it would reduce demand as the increased costs have to be passed on to consumers. The current wedding season in India which began in mid-January and lasts till May has seen a drop in jewellery sales due to depreciation of rupee and higher import costs of precious metals.

US to increase farm export tie up with major exporters

NEW YORK (Commodity new world): US is likely to increase the farm exports tie up with major importers especially with Asian nations to preserve this year’s record profit and exports.

Tom Vilsack, agriculture secretary, will lead a trade mission to China at the end of March to strengthen the trade tie ups.

China has become one of the major trade partner of US as the country purchased $20 billion worth US agricultural exports.

According to USDA, Farmer net income will reach $91.7 billion this year.

Meanwhile, increase in agriculture production is needed to meet world food needs, with the global population expected to increase by more than 2 billion by 2050.

Zinc prices may remain soft in H2, 2012: Barclays

NEW YORK (Commodity news world ): The zinc market was characterised by another year of surplus in 2011, leading to reported inventories rising by almost a quarter. As a result, zinc lived up to expectations for it to be an underperformer, and the outlook for fundamentals in 2012 suggests that it will continue to underperform.

-Production is expected to grow strongly this year and, as a result, the market will likely remain in surplus. Indeed, there will be new highs for zinc inventories in 2012, making for a soft outlook for prices, especially in the first half of the year.

-The potential for a sharp slowdown in the Chinese property market is a risk for zinc demand this year, with residential construction accounting for just over 10% of Chinese zinc consumption. Demand from the sector may slowdown, but will still probably grow at a healthy rate, driven by an estimated 15% growth in property investment in 2012.

-The key swing factor for the zinc market outlook over the next few years is supply. While currently plentifully supplied, a medium-term concentrate crunch may be looming, although the timing and extent of this will be partly defined by prices (high prices will encourage marginal production).

The three likely causes for this shortfall are: mine closures (such as Brunswick 215Ktpy, Perseverance 135Ktpy); steep declines in ore head grades (the reason for the almost halving in Century’s production in 2014 to 290Ktpy); and an expected decline in Chinese production growth. This trio of supply issues may culminate in a rapid tightening in metal supply and a period of much higher prices starting 2013

Zinc prices are expected to average $1950/tonne in Q1, 2012

Source: Barclays Capital Research

India's energy demand may slow down to 4.5% by 2030

NEW DELHI (Commodity news world ): India's energy demand may slow down to 4.5% per annum by 2030 on improvements in energy efficiency, according to global energy giant BP plc.

According to the report, India's energy imports will jump drastically by 2030 to meet the domestic needs. The country's gas imports will jump 47%, crude oil by 91% and coal will jump 40%.

India's share of industry will continues to grow, as infrastructure development and manufacturing gains and manufacturing expands to absorb a growing labour force.

Meanwhile, according to the report, China and India will be the world’s largest and third largest economies, jointly accounting for about 35% of global population, GDP and energy demand.

India is expected to consume half the total energy consumed by China in 2030.

By 2020, coal will remain the commercial source of energy.

In 1999-2010, India’s annual energy demand growth accounted for 5.5% per annum.

MCX Copper to boil on improved demand factor

AHMEDABAD (Commodity news world): MCX Copper traded higher on Monday late night trade following overseas market trends, but a strong rupee kept the uptrend limited. Copper April delievery contract was trading more than 4 percent higher from last week close of 422.60 and made high of 433 rupees per kilogram.

Copper price remains upbeat on positive note of demand outlook in international market. On wednesday, MCX Aluminum future for April opened at 428.40 rupees. Resistances for the contract are at 435 rupees and instant support looks at 425 rupees for coming days.


The prices have bounced after a series of fall in the market last week due to gain on lower LME stocks and some buying at lower level, according to Amrita Mashar, Commodity Analyst with Commodity Online.

Overall, Copper prices may remain upbeat till prices are supported at 420 levels on daily basis. One can buy Copper April contract near 429 rupees by maintaining stop loss of 427 for target near 434 in intraday trade, added Amrita.

Emerging market demand may pick up after sell-off in gold: HSBC

LONDON (Commodity news world ): Emerging-market demand for gold may pick up after Wednesday’s sharp sell-off, said HSBC in a daily research note.

According to HSBC, gold and silver fell as the dollar rose when Federal Reserve Chairman Ben Bernanke, appearing before Congress, stopped short of signaling readiness to conduct another round of bond purchases.

“The inability of gold to clear USD1,800/oz in recent days, the sharp increase in net long speculative positions on the Comex since the new year, and the paucity of emerging-market buying in recent weeks left gold vulnerable to a selloff, which dragged silver lower in its wake,” HSBC added.

“Declines of this magnitude, however, often attract emerging-market buyers and may also interest potential central-bank buyers. Buying from these quarters could soon staunch the decline.,” HSBC said.

“Furthermore, monetary policy remains accommodative not only in the U.S. but in other nations, the USD is still dogged by structural weaknesses, according to HSBC currency research, and global oil supplies remain vulnerable to geopolitically led disruptions. These factors should help reignite the gold rally, we believe,” bank concluded.

MCX SILVERM April contract trades higher

At 10:09 hrs MCX SILVERM April contract was trading at Rs 59942.00 up Rs 255.00, or 0.43%. It touched an intraday high of Rs 60124.00 and an intraday low of Rs 59750.00. So far 4406 contracts have been traded.
At 10:09 hrs MCX SILVERM June contract was trading at Rs 61285.00 up Rs 238.00, or 0.39%. It touched an intraday high of Rs 61585.00 and an intraday low of Rs 61203.00. So far 224 contracts have been traded.
At 10:09 hrs MCX SILVERM August contract was trading at Rs 62550.00 up Rs 257.00, or 0.41%. It touched an intraday high of Rs 62553.00 and an intraday low of Rs 62436.00. So far 7 contracts have been traded.