MCX Nickel likely to move in a range of 1075.3-1130.3
Commodity Online | August 07 2020
UPDATED 10:30:41 IST

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Technically Nickel market is under short covering as market has witnessed drop in open interest by 5.44% to settled at 1148 while prices up 15.3 rupees.

Now MCX Nickel is getting support at 1088.6 and below same could see a test of 1075.3 levels, and resistance is now likely to be seen at 1116.1, a move above could see prices testing 1130.3.

Nickel yesterday settled up by 1.41% at 1101.9 after key miner the Philippines reimposed a lockdown in parts of the country. China produced 14,600 mt of refined nickel in July, down 3.05% or 460 mt from June, but up 15.73% from a year earlier.

Output across Gansu smelters stood flat on month, but rose 30% from the same period last year. No maintenance plans have been heard by far amid stable production environment and moderate shipments.

July output in Liaoning and Tianjin held largely unchanged from June as local smelters kept normal production. July output across smelters in Xinjiang fell 37% month on month as part of the output will be classified into August statistics and some lines shifted to electro oxidation slots production.

Output in Shandong declined 16.67% as smelters reduced operating capacity to ease pressure. China’s refined nickel output to rise to 14,800 mt in August as production lines have recovered and part of July output will be classified into August statistics.

China’s refined nickel output increased 7.32%, or 1,030 mt, from May and 20.03% from a year earlier to 15,100 mt in June. Output at Gansu smelters rose by nearly 1,000 mt on the month, recovering to the level in March-April, and there is no adjustments to annual output targets.

Trading Ideas:
--
Nickel trading range for the day is 1075.3-1130.3.
--Nickel prices rallied after key miner the Philippines reimposed a lockdown in parts of the country.
--China produced 14,600 mt of refined nickel in July, down 3.05% or 460 mt from June, but up 15.73% from a year earlier.
--China’s refined nickel output to rise to 14,800 mt in August as production lines have recovered.

Courtesy: Kedia Commodities