At the Multi Commodity Exchange of India (MCX), precious metals and energies posted solid gains for the week Feb 06- Feb 10, 2012. Base metals weakened except for copper which rose over 1%. In India, Commodity Transaction Tax once again sparked debate as the FICCI and ASSOCHAM opposed the government's proposed move. Indian IIP numbers came out much weaker than expected, dampening investor confidence.
China's copper demand growth may shrink by 50% in 2012 on the back of a cutback in a government subsidy program. China is the largest copper consumer in the world, accounting for almost 40% of global consumption.
NCDEX steel long has been on a constant downtrend after hitting a peak of around Rs 34000/tonne in early January. However, indications from China present a much better outlook over the next few months.
The CME group has decide to alter margin requirement for trading metals and energies.
