MCX Nickel likely to move in a range of 1096.5-1140.9
Commodity Online | August 13 2019
UPDATED 10:00:32 IST

MCX Mentha Oil likely to move in a range of 1279.3-1313.3

MCX Aluminium may trade between 131.8-133.8 levels

NCDEX Chana under short covering; Resistance seen at 4477

MCX Nickel likely to move in a range of 950.7-1013.7

MCX Cotton under fresh selling; Support seen at 18990

Technically MCX Nickel is getting support at 1109.1 and below same could see a test of 1096.5 levels, and resistance is now likely to be seen at 1131.3, a move above could see prices testing 1140.9.

Nickel on MCX settled up 0.66% at 1121.7 after growing speculation that the Indonesian government may bring forward a proposed ban on exports of unprocessed nickel ore. Indonesia is discussing bringing forward a ban on mineral ore exports that was previously set to begin in 2022, but no decision has yet been made on such a move, its trade minister said.

Supply of stainless steel ingredient nickel pig iron on the Chinese spot market is "still relatively tight and some stainless steel plants have already locked in orders until the end of September". As the law stands, Indonesia will reintroduce a ban on exports of nickel ore in 2022, having extended it by five years to encourage miners to build processing capacity.

The speculation in the nickel market is that the Indonesian government is thinking about bringing the ban forward to next year or even this year. Nickel ore inventories across all Chinese ports extended their increases by 300,000 wmt from a week ago to 13.79 million wmt as of Friday August 9, data showed. Stocks in metal content rose 2,700 mt this week to stand at 116,000 mt.

Stocks across seven major Chinese ports grew 210,000 wmt to stand at 11.29 million wmt.Inventories of refined nickel in the Shanghai bonded areas extended their increases, bolstered by the arrival of forward cargoes that were ordered when the arbitrage window was open. Import losses widened to an average of 5,400 yuan/mt this week, which deterred outflows to domestic markets, and helped grow bonded stocks.

Trading Ideas:
--Nickel trading range for the day is 1096.5-1140.9.
--Nickel gained after growing speculation that the Indonesian government may bring forward a proposed ban on exports of unprocessed nickel ore.
--Indonesia is discussing bringing forward a ban on mineral ore exports that was previously set to begin in 2022, but no decision has yet been made.
--Nickel ore inventories across all Chinese ports extended their increases by 300,000 wmt from a week ago to 13.79 million wmt.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil NR 9770.00
Coconut Oil 2.5 16800.00
Sugar NR 3800.00
Rubber 0.03 11700.00

More