查看更多>>摘要：It required some courage to predict a base metals rally amidst economic gloom although skeptics may say that it is purely technical. After few weeks of continuous loosing streak, the US and European equities shrugged off indifferent economic news to close strongly by the end of last week. Base metals shorts were caught off guard by Chinese buying early last week that had the shorts worried and scampering for cover. However, from here on further rally in equities may not necessarily translate into firmer base metal prices but the dominant shorts may be tempted to take profits and hence provide the support to the prices. Next hurdle for copper is 1500-25 dollars tons band and there is a likelihood that copper price may test 1480s dollars before resuming their upward march. In the case of aluminium, further short covering looks a bit optimistic although any moves towards early 1300 dollars may be bought into. In rest of the base metals, lead, zinc and nickel are shadowing copper and aluminium and are likely to attract trade buying if we witness further firming up of copper and aluminium prices.
查看更多>>摘要：Meanwhile, the Disinvestment Ministry wrote to the Prime Minister justifying strategic sale in National Aluminium Company Ltd (Nalco). In its note, the ministry, has said that the profitability of the world's lowest cost alumina producer was on a decline and that it had to diversify in a regime of falling import duties for it to remain competitive. The note was a response by the ministry to a letter from Coal and Mines Minister Uma Bharti to the Prime Minister demanding a reconsideration of the decision to sell Nalco. The PSU's net profit to sales ratio has been falling over the years and stands at I 6 per cent in 2001-02, from a high of 30 per cent just 10 years ago. With aluminium prices declining globally, the profitability of Nalco would also come under strain.
查看更多>>摘要：Finally the government has relented to the demand of the bullion industry. Gold will now be treated akin to foreign exchange (forex) currency and not just as an idle precious metal or commodity. Globally, gold is considered as forex and is part of bullion banks' forex dealings. The Reserve Bank of India (RBI) has decided to allow bullion banks to have one single open position limit for both gold and forex. The banks will however, have to get the board approval in this regard. Till recently, the RBI treated bullion banks' limits in both gold and forex separately. The RBI, in a statement on the on sale of gold/ silver/ platinum dated October 7, 2002, sent to all banks authorised to import these metals, said: "Banks (bullion banks) need to have a single open position limit for both gold and foreign exchange. Banks may operate within the aggregate of the open position limits for foreign exchange and gold already approved by us (the RBI). In case there is a need for enhancement in the common open position limit, banks may approach the department for approval of such enhanced limit. In terms of our extant instructions, the open position limit would carry 100 per cent risk weight." RBI's earlier circular dated March 4, 1998, advised these banks to lay down, with the approval of their boards, prudential limits on taking open position in gold and also to obtain the specific approval of the RBI for such limits.
NSTL