Blue Star another company started same Story about Commodity Price & Volatility

 Blue Star:-

The initial company to indicate that commodity volatility and inflation will impact future profit margins.

 

Elevated commodity prices are projected to affect the profit margins of both prospective and existing company projects.

Copper Fundamentals

 

Copper squeeze 

• The London Metal Exchange (LME) is currently experiencing low inventory levels.
  
  
• Concerns regarding US tariffs are contributing to elevated inventory levels within the United States.
  
  
• Increased scrutiny on Scrap Copper taxation fraud in China is generating demand for new copper.
  
  
• A significant premium in physical copper deliveries in China, approximately $100 to $120, is leading to a shortage on the LME as traders transfer inventory to China.
  
  
• Speculation of a substantial shortage is creating market apprehension for copper globally.
  
  
• A significant number of copper smelters in China have undergone maintenance, leading to supply shortages.
  
  
• The proportion of shutdowns attributed to smelter maintenance has increased from 6.3% to 14%.
  
  
• High Demand from AI & Chip maker Also Creating panic in copper market.

• Major producer China implemented strict export curbs on sulfuric acid, tightening global supply.
  Sulfuric acid is a vital chemical input in copper mining, primarily used to dissolve copper from low-grade oxide ores via heap leaching. It converts copper minerals into dissolved copper sulfate, which is then purified and processed through solvent extraction and electrowinning (SX-EW) to yield high-purity metal. Conversely, copper smelting operations can also produce massive amounts of sulfuric acid as a useful economic byproduct
  
  
  
• The cost of acid reagents has escalated significantly, rising from approximately 13% to nearly 20% of total operating expenses within specific oxide-leaching and African Copperbelt operations.
  
  
• Numerous remote mining facilities are reporting critically low inventory levels, currently at 30–60 days, which presents a significant risk of mandatory production curtailments.
  
  
• Operations engaged in processing high-carbonate copper ores necessitate substantial volumes of acid per tonne of metal produced, thereby eroding profit margins and compelling mining companies to re-evaluate near-term project economics.

K shape Recovery In Global Economy & Commodity Inflation overlooked

Global wealth has experienced a significant surge; however, a substantial portion of these gains represents unrealized paper profits.

Global wealth has reached $570 trillion, indicating that the current valuation boom is outpacing genuine economic growth.

Effective currency management often requires governmental intervention.

The global economic landscape and prevailing trading practices are subject to daily fluctuations, frequently diverging from established financial fundamentals.

The elevated cost of commodities essential for infrastructure development is projected to impede company growth and necessitate substantial working capital for business operations.

Crude oil, copper, aluminum, and silver are currently essential components in infrastructure development. These commodities serve as fundamental raw materials for various infrastructure projects. Presently, these commodities are experiencing significant volatility and increased costs, which is anticipated to impact business operations and corporate strategies in the near future.

Businesses cannot tolerate significant volatility in raw material costs, nor can they accommodate unexpected long-term project expenses.

Recent company announcements indicate a new order has been secured, leading to an increase in stock valuation due to anticipated profit. However, commodity price volatility is projected to negatively impact these potential earnings.

The majority of defense stock valuation and solar panel manufacturer stock valuation have become the biggest victims due to commodity volatility.

Company costs have risen significantly, for example, computers are 25% more expensive compared to two years ago, and mobile devices have increased by 15-20% from last year.

Therefore, it is imperative to recognize that every government will soon confront commodity inflation.

This issue is currently being overlooked or concealed.

Commodity Inflation Bubble always biggest burden for any economy in world.

Be catious in investment before it Burst.

THANGAMAYL :- BEST EXAMPLE OF NEWS RELATED STOCK,

 

STOCK POSTED RESULT & WE SAW WATERFALL


NOW TODAY STOCK NEWS CAME THEY ARE OPENNG NEW BRANCH & STOCK HIT UPPER CIRCUIT


KEEP SAFE YOUR SELF WHILE INVESTING IN MARKET.

As said earlier First week after expiry is trending

 

Nifty Moves Trending in 1st week after Monthly Expiry in previous 2-month history