Prestige Institute of Management and Research, Indore

(An Autonomous Institution Established in 1994, Accredited with Grade ‘A++’

NAAC(UGC) ISO 9001 : 2008 Certified Institute, AICTE / UGC Approved
Programs affiliated to DAVV, Indore)

(Batch : 2020-22)

Subject : Equity and Commodity Derivatives

Assignment Submission on the Profile and Market
Performance of a Commodity i.e., ‘Zinc’

Submitted To: Submitted By:

Dr. Gagan Bhati Aditi Agrawal
MBA FT-III
Section : C
(1121212601)

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 CONTENTS

S. No. Title Page No.

1. Type of Commodity – Base Metals 3

2. Profile of the Commodity i.e., Zinc 4-5

3. Last 5 year performance of the 5

Commodity i.e., Zinc

4. Description 6

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 Type of Commodity – Base Metals

What are Base Metals?

Base metals are the common metals that tarnish,
oxidize, or corrode relatively quickly when
exposed to air or moisture.
Base metals can be contrasted with precious
metals and are widely used in commercial and
industrial applications, such as construction and
manufacturing.
Base metals are often more abundant in nature
and sometimes easier to mine, so their prices are generally lower than precious
metals.

Examples of Base Metals includes Aluminium, Lead, Copper, Nickel and Zinc.

‘Zinc’ is a type of Commodity which comes

under the head of Base Metals.

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 Profile of the Commodity i.e., Zinc

Zinc Futures on MCX are being trading since 27 March 2006.

Introduction to ‘Zinc’ – Zinc is a bluish white lustrous metal. It is normally

covered with a white coating on exposure to the atmosphere. It is the fourth most
common metal in use, after iron, aluminium and copper. Zinc can be recycled
indefinitely, without loss of its physical or chemical properties. It is present in a
wide variety of foods and is found particularly in association with protein foods.
Zinc is not found as a metal in the earth’s crust and is only found as zinc
compounds. It is mostly used for galvanization and in the battery industry. It can
be melted on a cooking stove. For a metal, it boils at a low temperature. It is not
magnetic and easily forms alloys with other metals.

Lifecycle -

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Factors Influencing the Market

• Zinc prices in India are fixed based on the rates that rule in the international
spot market, and INR–USD exchange rates.
• Economic events, such as the national industrial growth, global financial
crisis, recession, and inflation, affect metal prices.
• As societies develop, their demand for metal increases based on their
current economic position, which could also be referred to as ‘national
economic growth factor’.

Last 5-year performance of the Commodity i.e., Zinc

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 Description

The above chart under the head of last 5-year performance of the commodity i.e.,
Zinc shows that in ‘Jan. 2017’ the commodity was showing an upward movement
and between the period of ‘Jan. 2017’ and ‘July 2017’ it showed downward
movement. After ‘July 2017’ the commodity showed a high upward movement
and again it started declining between the period ‘Jan. 2018’ and ‘July 2018’.
Then again it took an upward movement but in ‘Jan. 2020’ the commodity prices
fell drastically. After ‘Jan. 2020’ it again took upward movement and it showed
upward movement till ‘July 2020’ according to the chart above.
A strong buy is suggested for the commodity according to Investing.com as in
the month of ‘Nov. 2021’.
52-week range of the commodity is given as: 201.45-326.80 as on 26th
November 2021.
Day’s range as on 26th November 2021 is given as: 267.00-274.60. It means the
commodity was comparatively less volatile because it showed a movement of just
7.60 Rs. i.e., from 267.00-274.60.