Technically Nickel market is getting support at 584.8 and below same could see a test of 575.5 level, and resistance is now likely to be seen at 600, a move above could see prices testing 605.9.
Nickel on MCX settled up 1.5% at 594.20 tracking firmness from LME Nickel which jumped nearly 1.04% to settled at $9,030.00 a metric ton despite investors shunned risk and bet on rising supply from Indonesia and Philippines.
Pressure seen as Investors were shelving rosy hopes for the United States reform and rethinking strategies premised on Donald Trump´s economic growth promises on Wednesday, as the President faced his loudest criticism yet over possible collusion between his election campaign and Russia.
Sentiments remain weak for Nickel prices on the expectations of higher supplies from top ore producer the Philippines pushed nickel prices down to $US9,030, the lowest since May 8. Nickel prices have now moved lower because of growing concerns about a surplus. Expectations for a surplus rose after a surprise reversal of the Indonesian mining laws in January.
Producers that have committed to build smelters in the next five years are now allowed to export any excess low-grade nickel ore. Delays surrounding the closure of Filipino nickel ore mines, and questions over whether these will actually occur, are also affecting the outlook.
The Philippines accounts for around 20% of global nickel ore capacity and around half the nation’s nickel output appeared at risk of closure.
Mine suspensions, alongside unfavorable weather and maintenance, meant Filipino nickel production fell -47% in the March quarter. Nevertheless, the directive to close mines is now under review following an appeal by miners, while the minister instigating the crackdown, Gina Lopez, failed to win approval to retain her position.
--Nickel trading range for the day is 575.5-605.9.
--Nickel prices gained more that 1.5% despite investors shunned risk and bet on rising supply from Indonesia and Philippines.
--Metals prices found little support from data that showed Chinese real-estate prices climbed in April.
--Demand for industrial metals expected to slow in China amid renewed focus on consumption
Courtesy: Kedia Commodities