Base metals are extensively utilized in commercial as well as industrial applications. They are found aplenty in nature and hence more than precious metals like gold, silver, and platinum. Base metals comprise of aluminium, copper, lead, nickel as well as zinc.
The factors that affect the Market
Fixation of Metals prices in India is done on the basis of the rates that prevail in the international spot market, as well as the exchange rates of the Indian Rupee and US Dollar.
The growth of industries in a country, financial crisis at the global level, inflation and recession are economic events which affect metal prices.
Commodity-related occurrences like the building of new production amenities or processes, new functions or the discontinuation of historical uses, unforeseen mine or plant shutting down due to natural disaster, supply disruption, accident, strike, etc, or industry reformation, all influence metal prices.
Implementation or abatement of taxes, penalties, plus quotas is trade policies that are set by Government which also influence the supply as they control material flow.
Geopolitical occurrences or economic changes, as well as armed disagreement, can result in major changes.
Trading Base Metals
There are 2 major ways through which risk in the market of base metals can be managed: by trading futures and options, or through over the counter forwards trading. We at Gill Broking cover a broad range of products in our base metals futures and options.
Futures contracts are unvarying contracts for the acquisition and sale of physical commodities for future deliverance on a synchronized commodity futures exchange.
Forward contracts are modified contracts between 2 parties to purchase or sell commodities at a particular price on a future date as well as are privately negotiated and traded OTC.
As societies expand their demand for metal rises depending on their present economic position or otherwise known as ‘National Economic Growth Factor’. Gill Broking renders MCX suggestions in base metals. Intraday commodity news is also provided. Gill Broking, in addition, obtains appropriate information for metals. All base metals are mostly traded by dealers, traders, but the most important consequence on the prices is dependent on the prices on worldwide stock exchanges like NASDAQ, LSE etc. So it is indispensable to be acquainted with the figures once you hold a position.
Gill Broking blends its know-how in commodity risk management, and economic research to allow its clients to expansively manage contact to commodity price instability.