In February,2012 import of RBD Palmolein shoot up to over 3.00 lakh tons from average of 1.10 lakh tonnes in earlier three months, thanks to lower duty on RBD Palmolein (8%) and higher duty on CPO (16.5%) introduced by Indonesian Government. The situation is likely to continue unless Govt. of India takes some corrective steps including change of tariff value and raising import duty on refined oils.
During Nov.,2011 to Feb.,2012, Import of refined oil (RBD Palmolein) up by 64% and reported at 6.35 lakh tonnes compared to 3.87 lakh tonnes during the same period of last year. Share of refined oil has increased to 21%, while crude oil has decreased to 79% and reported at 23.67 lakh tonnes compared to 22.26 lakh tonnes during corresponding period of previous year. Share of refined oil is likely to increase as gap between crude and refined oil has further reduced.
Germany’s Aurubis, Europe’s biggest copper producer affirmed that European copper demand has started to show signs of recovery since February 2012. While the physical business was overshadowed by the financial crisis in the last months of 2011, the (European) market after initial hesitation seems to be developing towards a situation where cathodes are in demand again.
Even though the European debt crisis was not resolved completed but easing measures was increasing the demand within the region. Some cathode (new metal) shipments from South America to Europe were recently delayed, which also resulted in copper demand for prompt delivery.
As during the negotiations between producers and consumers for 2012 less copper deliveries were signed on an annual basis, there is a need for additional supply in the spot business. This spot delivery demand is meeting limited availability from producers and relatively low European copper inventories.
London Metal Exchange (LME) warehouses currently hold about 38,000 tonnes but this is concentrated in a few locations. Among LME stocks, some 11,000 tonnes are located in Livorno in Italy and about 24,000 tonnes are in Rotterdam. Long-term copper treatment and refining charges for 2012 (TC/RCs) have now been generally established at a level of $63.50 a tonne and and 6.35 cents/lb.
This level is up 12.4% on the year and was agreed by Aurubis itself in December. TC/RCs are paid by miners to smelters to refine concentrate into metal and are a key part of the global copper industry’s income.
The latest data compiled by Solvent Extractors Association of India stated that the total imports of Vegetable oils (edible & non-edible) during February 2012 is reported at 8.75 lakh tonnes compared to 5.50 lakh tonnes in February 2011, consisting of 8.72 lakh tonnes of edible oils and 0.03 lakh tonnes on non-edible oils i.e. up by 58.95%.
The overall import of vegetable oils during November 2011 to February 2012 is reported at 30.60 lakh tonnes compared to 26.93 lakh tonnes i.e. up by 13.63%. Thus you have learnt, “Why should I opt for commodity calls from the market?”