Known as an important raw material in industries ranging from construction, automobiles to shipping, it is important for suppliers and consumers to hedge their products against futures price movements.
Investors can gain exposure to base metals commodities such as Aluminum, Copper, Lead, Nickel, Zinc and Iron Ore through trading futures and forward contracts. At Phillip Futures, we offer trade execution on Industrial Metals contracts on various exchanges such as COMEX, NYMEX and SGX Asiaclear®. We offer the non-ferrous metal forward contracts as well as the exchange-traded metals futures.
Why trade Base Metals
Aluminium
Whether measured in terms of quantity or value, the use of aluminium exceeds that of any other metal except iron, and it is important in virtually all segments of the world, from transport, packaging, electrical application to medicine, and construction of homes and furniture.
Total world production exceeds 30 million metric tonnes per annum with USA, Russia, China and Canada accounting for over 50%, with the primary users being the automotive industry and container and packaging industries.
Copper
Copper was one of the first metals worked by man. The raw material can be easily mined and fashioned into primitive utensils, tools and weapons. It has been found to be a very efficient conductor of electricity and offers good resistance to corrosion.
Copper is now the world's third most widely used metal, after iron and aluminium. Worldwide mine production exceeds 17 million tonnes and there are huge resources, both land and sea-based.
Nickel
Approximately two-thirds of the world's nickel consumption is utilized for the production of stainless steel.
World production of nickel now exceeds 1.5 million metric tonnes per annum with a worldwide reserve base estimated at 140 million metric tonnes. Russia, Canada, New Caledonia, Cuba and Australia are the major producers of nickel.
Zinc
Zinc is the fourth most widely used non-ferrous metal in the world. Its resistance to non-acidic atmospheric corrosion means that zinc is instrumental in prolonging the life of buildings, vehicles, ships and steel goods and structures of every kind.
Total world production now exceeds 10 million metric tonnes per annum. Peru, Australia and China are the three largest producers of zinc, with Australia holding the highest reserves.
Iron Ore
Iron ore is the most abundant rock forming element and compose about 5% of the earth crust. Iron ore is the only material from which iron and steel products are make. It is widely used in the world to make products for uses in building infrastructure, car, shipping vessels and many others.
Consumption of iron ore is constantly growing. China imports almost half of the iron ore mined worldwide. Supply of iron ore comes mainly from Australia, Brazil and several other parts of the world.
Contact Us
Metals desk
Tel: (65) 65311509
Fax: (65) 65367367
Email: commodities@phillip.com.sg
What Metal Futures Contracts are available for trading?
