MCX-Copper can see a corrective rally
The copper futures contract traded on the Multi Commodity Exchange (MCX) tumbled over 4 per cent in just five trading days from the level of ₹375 on June 15 to ₹359 on June 19. The overall downtrend that had begun in May seem to have found a temporary bottom. The contract recorded a low of ₹359.15 on Friday and has reversed sharply higher from there. It is currently trading near ₹368. Immediate support is at ₹363. If the contract can manage to sustain higher, then the current up move can extend further to test the next resistances at ₹375 and ₹377 in the coming week. A break above ₹377 can take the contract further higher to ₹383 – the 38.2 per cent Fibonacci retracement resistance level. However, the possibility of the overall downtrend resuming after this corrective rally cannot be ruled out.
Short-term traders with high risk appetite can take a contrarian trade and go long at current levels. Stop-loss can be placed at ₹361 for the target of ₹377.
The contract will come under pressure again if it declines and records a close below ₹363. In such a scenario it can fall to ₹357 which is an important support level to watch. A further break below ₹357 will increase the downside pressure and will have the potential to drag the contract lower to ₹340.
Coal auction: Govt identifies 8 more blocks
Eight more coal blocks are in the queue and will be put up for auction after the third round of auction is completed in August, Coal Secretary Anil Swarup said on Wednesday.
Addressing a conference on Metals and Minerals organised by the Indian Chambers of Commerce, Swarup said, “There is plenty of coal that is available. We have identified eight more blocks which would be offered after the third round of auction. In a years time, we believe that coal will cease to be problem.”
In the third round of auction which is expected to be complete by August 17, 10 blocks are on offer for the unregulated sectors of steel, cement and captive power plants.
Swarup added that he expects fewer bids from aluminium companies leaving more coal available for the steel sector. “Most of the aluminium plants have already bid and won in the previous two rounds,” he said.
Steel producers to benefit from import curb: India Rating
The government’s recent move to curb imports of both alloy and non-alloy steel products is expected to help increase the realisations of domestic producers of these goods, a rating agency said today.
The government hiked the import duty on non-alloy steel products by 2.5 per cent as domestic producers struggle to cope with surging cheap imports from China and South Korea, among other countries.
Non-alloy steel flats now command an import duty of 10 per cent, while non-alloy steel longs attract a duty of 7.5 per cent.
Anti-dumping duty on some alloy steel products is directionally positive in the long-term, India Rating and Research (Ind-Ra) said in a report.
The import restriction is expected to help increase the realisations of domestic alloy and non-alloy steel producers, it added.
The Finance Ministry has imposed anti-dumping duties on the import of hot-rolled stainless steel (HR SS) flats of grade 304 originating from China, Malaysia and South Korea.
The duties imposed are in the range of $180 per tonne for imports from Korea to $316 a tonne for shipment from Malaysia.
The alloy steel sector, of which stainless steel is a major part, has been particularly vulnerable as imports have averaged 25 per cent of the domestic output over the last few years despite having capacity utilisation of 50-60 per cent, according to the report.
The non-alloy steel sector, however, has fared better where imports have been nearly 8 per cent of domestic production with capacity utilisation of 80-85 per cent.
The quantum of imports of alloy steel products has always been higher as the domestic price per tonne of alloy steel is significantly higher than that of non-alloy steel, the report said.
PSPCL to import 6 lakh t of coal from S. Africa
The Punjab State Power Corporation Ltd (PSPCL) plans to generate more electricity in the state to cope with the frequent load shedding and, therefore, intends importing 6 lakh tonnes of coal worth Rs 550 crore from South Africa, it is learnt.
The imported coal would start reaching power units from July onwards, according to reports.
PSPCL currently receives only 3.5 rakes of coal daily as against the demand for 9 rakes, reports said
|Record five lakh t of wheat being imported
Indian flour millers and global trading companies have inked deals to import 5,00,000 tonnes of premium Australian wheat since March, the biggest purchase in more than a decade despite surplus stocks at home.
The fear of a reduced wheat crop due to the untimely rains in February and March was the prime reason for millers in south India to go in for imports. They were especially worried of a shortage of high-protein varieties, it is learnt.
According to sources, traders and millers could import a further 5,00,000 tonnes from France and Russia, where harvests are imminent. The deals are seen likely to push up benchmark prices that have already jumped on recent concerns about crop quality in the US.
Nearly half the quantity contracted has already reached India. The rest is expected to be delivered next month.
This post was written by Atlantic Admin