Nickel's fundamentals held strong this month with prices trading at higher levels. The South East Asian countries like China and Hong Kong have been the main driver of prices of the metal. Apparent consumption for nickel rose 17.6 percent in these countries, due to record imports and a 25% month on month rise in domestic output last month. Imports of refined nickel and alloy rose 19% on the month and 127% on the year to a record 25,032 tonnes in May, hitting all-time high for the second consecutive month because of demand from investors who had bought the metal for stockpiling.
Trading platform that even a 5 year old can trade. Join nowAround 50,000 tonnes of refined nickel, which is about two months of consumption in China, was stored in private storage places during the start of the month. The demand and supply also seems to be in equilibrium as the there have been not much change in the LME warehouse stocks which indicated that in and out of the stocks in the warehouse are almost equal. The counter gave a breakout this month after a much awaited period.
The level of Rs.666/kg and $ 13900/t which had been restraining the upside has finally given up and has made way for the counter to move up twisting the trend in favour of bulls, thus escalating higher to test the highs of around Rs750/kg as expected, but the counter is still facing some hurdle at Rs770kg and $15900/Mt in LME and incase the counter is not able to sustain above that, we might be in for some healthy correction dragging it lower towards Rs685/kg and then Rs660/kg mark. On the other hand, crossover of that might lead to sharp upside in the metal escorting it higher towards Rs784/kg and eventually Rs850/kg.
Courtesy: Religare Commodities Explore Commodity Online Mobile Services
