How to calculate for Aluminium and Zinc, parity and disparity between MCX price and International price?

[Umar]

As per SEBI guidelines, Aluminium contracts from the month of March 2019 and Zinc contracts from the April 2019 will be physically settled similar to Gold and Silver. Just saw this SEBI/MCX circular.

mcxtrd0032019---modifications-in-aluminium-zinc-futures-contracts.pdf

I can also see that MCX is now showing up a separate spot market price for these physically settled contracts.

Spot Market Price

Now that these are physically settled, does someone have a calculation on how to calculate the parity/disparity between international price and local price of Zinc and Aluminium?

Can @nithin @MohammedFaisal @siva help?

[nithin]

@Umar

Now that these are physically settled, does someone have a calculation on how to calculate the parity/disparity between international price and local price of Zinc and Aluminium?

Had answered similar question for Gold/Silver earlier

How to calculate, Gold & Silver, international prices and MCX price, parity and disparity?

I have also put up the below on this link along with the formulae used:    Gold       Silver       Spot in $ (per troy oz) 1,229.00     spot in $ (per troy oz) 16.98   Add CIF in dollars 3.00   Add CIF in dollars 0.15 CIF: Cost - Insurance & Freight     1,232.00       17.13   Multiply 32.1507 (1 troy oz =31.1gm)     Multiply 32.1507       …

Aluminium
	Spot in $ (per MT)	$1,850.00
Add	CIF* in $ (per MT)	$50.00
	RBI Reference rate* as of Jan 3,2019(USDINR)	₹70.36
Convert	Spot +Premium(INR per MT)	₹133,689.13
Convert	Spot + Premium(INR per KG)	₹133.69
Add	Custom Clearing Cost(1%)	₹1.34
	Landing Cost(INR per KG)	₹135.03
Add	Basic Customs Duty + Surcharge(8.25%)*	₹11.14
	Landed Cost	₹146.17
Add	Port Clearing & Handling charges(Rs 2/KG)	2.00
Add	Delivery Overheads* to Warehouse(Thane) (Rs 1/KG)	1.00
	Final Landed Cost	149.17

Similarly for Zinc,

Zinc
	Spot in $ (per MT)	$2,475.00
Add	CIF* in $ (per MT)	$200.00
	RBI Reference rate* as of Jan 3,2019(USDINR)	₹70.36
Convert	Spot +Premium(INR per MT)	₹188,220.22
Convert	Spot + Premium(INR per KG)	₹188.22
Add	Custom Clearing Cost(1%)	₹1.88
	Landing Cost(INR per KG)	₹190.10
Add	Basic Customs Duty + Surcharge(5.5%)*	₹10.46
	Landed Cost	₹200.56
Add	Port Clearing & Handling charges(Rs 2/KG)	2.00
Add	Delivery Overheads* to Warehouse(Thane) (Rs 1/KG)	1.00
	Final Landed Cost	203.56

*CIF - Cost of Insurance & Freight)
*RBI Reference Rates
*Surcharge or SWS stands Social Welfare Surcharge charged by the Govt.
*Delivery overheads will vary if Warehouse location is different

Here is a link to the above table.

[sumana]

Now that Lead and Nickel contracts are also physically settled, can you provide the calculations for the same

[DE0068]

It’s really appreciable, that you keep on solving the problems and this one is really a big problem as even 1 rs. change cost us rs. 5000.

I have been using this sheet for last 7-10 days for calculation basis, but never get the right values which matches with MCX, initially the difference was somewhere 30 paise, now it has gone upto rs. 3, which is really big for the trader like me.

[nithin]

@DE0068

I have been using this sheet for last 7-10 days for calculation basis, but never get the right values which matches with MCX, initially the difference was somewhere 30 paise, now it has gone upto rs. 3, which is really big for the trader like me.

This is the theoretical calculation, the actual price difference is based on demand supply on the exchange. It can be less or more.

[Ratna_sai_kosuru]

@nithin

*CIF - Cost of Insurance & Freight)
*RBI Reference Rates
*Surcharge or SWS stands Social Welfare Surcharge charged by the Govt.
*Delivery overheads will vary if Warehouse location is different

Here is a link to the above table.

are the surcharges and CIF same even today? where do we find the updated charges ?