ZINC - MCX

INDIAN SCENARIOIndia’s refined zinc production was 646,000 MT in 2009, an increase of around 8%-9% from the previous year.Consumption of refined zinc in India reached 512, 000 MT in 2009, an increase of 20.8% from 2008. India's percapita zinc consumption is at a meager 0.4 kg, among the lowest in the world.The principal use of zinc in the Indian market is in the galvanising sector, which currently accounts for anestimated 70% of the total production.GLOBAL SCENARIOThe rise in refined zinc in 2010 was driven mainly by further growth in Chinese apparent demand of 13.3%and a recovery in European usage of 29.3%. Other contributing factors included increases in Brazil, India,Japan, the Republic of Korea, Taiwan and Thailand.Major refined zinc exporting countries are Canada, Australia and Rep. of Korea, while major refined zincimporting countries are China, USA and Germany .Leading Refined Zinc Exporters - 2009Leading Refined Zinc Importers - 200912.2%CanadaAustralia15.4%ChinaUSA40.0%8.7%8.1%Rep. of KoreaSpainFinlandKazakhstan39.0%13.5%GermanyBelgiumFranceOther Asia4.3%4.7%4.8%6.2%6.0%5.0%NetherlandsMexicoIndiaOthers2.9%3.2%3.5% 4.1%5.8%4.3%8.3%NetherlandsItalyTurkeyOtherMCX is No.1 insilver and gold,No.2 innatural gas,and No.3 incrude oil**In terms of the commodity futurescontracts traded during CY 2011(Source: Websites of exchangesand FIA)Source : UN Comtarde - Year book 2009FACTORS INFLUENCING THE MARKETZinc prices in India are fixed on the basis of the rates that rule on the international spot market, andRupee and US Dollar exchange rates.Economic events such as national industrial growth, global financial crisis, recession, and inflation affectcommodity-specific events such as the metal prices.Construction of new production facilities or processes, new uses or the discontinuance of historical uses,unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth), orindustry restructuring, all affect metal prices.Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affectsupply by regulating (restricting or encouraging) material flow.Geopolitical events involving governments or economic paradigms and armed conflict can cause majorchanges.There is also a national economic growth factor. Societies, as they develop, demand metals in a way thatdepends on their current economic position.IMPORTANT GLOBAL EXCHANGESExchange Product Lot Size ( in MT) ISTLME Zinc 25 6:30 to 00:30 *Zinc Mini 5 17:10 to 22:40**Shanghai Futures Zinc 5 6.30 to 9:00Exchange (SHFE) 11:30 to 13:30MCX Zinc 5#10:00 to 23:30 ( Monday- Friday)Zinc Mini 1 10:00 to 14:00 ( Saturday)www.mcxindia.com* LME select ** LME Ring timing (Start time:- Ring session, End time - Kerb Trading), #: Day light timing 10:00 to 23:55 (Winter)