MCX Nickel likely to move in a range of 1021.1-1070.3
Commodity Online | July 30 2020
UPDATED 10:30:35 IST

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Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 38.49% to settled at 1299 while prices up 18.1 rupees.

Now MCX Nickel is getting support at 1036.6 and below same could see a test of 1021.1 levels, and resistance is now likely to be seen at 1061.2, a move above could see prices testing 1070.3.

Nickel yesterday settled up by 1.75% at 1052.2 on short covering after prices dropped as China’s nickel ore imports doubled in June as supply from the Philippines recovered.

China’s nickel ore imports more than doubled in June compared to the previous month, as the top supplier—the Philippines—has shrugged off the impact from the COVID-19 lockdown measures.

China imported 3.45 million mt of nickel ore and concentrate last month, up 1.77 million mt, or 105.5% from May but down 17.1% from June 2019, according to data from China customs.

Imports from the Philippines jumped 129% month on month but dipped 3.5% year on year to 3.07 million mt in June. A recovery of supply from New Caledonia from adverse weather also contributed to the sharp increase in China’s nickel ore imports in June.

About 246,000 mt of nickel ore and concentrate imports to China last month came from New Caledonia, making the South Pacific Island Nation the second largest supplier of such materials to China.

That was up 201.7% from a month earlier, and brought the tally for the first half of the year to 833,600 mt. There were Indonesian nickel ore moving from bonded warehouses to China last month, which all were low-grade products and totalled 107,000 mt, down 31.6% from May.

Trading Ideas:
--Nickel trading range for the day is 1021.1-1070.3.
--Nickel prices gained on short covering after prices dropped as China’s nickel ore imports doubled in June as supply from the Philippines recovered.
--China imported 3.45 million mt of nickel ore and concentrate last month, up 1.77 million mt, or 105.5% from May.
--A recovery of supply from New Caledonia from adverse weather also contributed to the sharp increase in China’s nickel ore imports.

Courtesy: Kedia Commodities

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