Technically Nickel market is under fresh buying as market has witnessed gain in open interest by 7.3% to settled at 9659 while prices up 13.9 rupees.
Now MCX Nickel is getting support at 1216.6 and below same could see a test of 1205.6 levels, and resistance is now likely to be seen at 1235.3, a move above could see prices testing 1243.
Nickel on MCX settled up 1.15% at 1227.5 on short covering after prices dropped after data showed that China’s output of nickel pig iron (NPI) rose 4.82% from a month ago to a record high of 53,200 mt in Ni content in August, as high-profit margins prompted smelters to ramp up operations.
Nickel ore output in the Philippines, one of the world's top two producers of the material for stainless steel and batteries, rose 3% in the first half, government data showed. Output was capped as half of the country's mines were closed for maintenance or environmental reasons. The Philippines sells most of its nickel ore to top buyer China. It produced 11.31 million dry metric tonnes of the material between January and June, compared with 11.01 million tonnes in the same period last year, the Mines and Geosciences Bureau (MGB) said.
Philippine nickel miners are likely to ramp up ore output by next year, but their production capacity is limited by a number of factors, including government-imposed mining curbs, the head of the local industry lobby group said. The Southeast Asian nation's nickel ore output may rise in 2020 mining season, but the volume is unlikely to return to the 2014 record-high level of about 50 million tonnes, said Dante Bravo, president of the Philippine Nickel Industry Association.
--Nickel trading range for the day is 1205.6-1243.
--Nickel settled up on short covering after prices dropped after data showed that China’s output of nickel pig iron rose 4.82%.
--Nickel ore output in the Philippines, rose 3% in the first half, government data showed.
--Philippine nickel miners are likely to ramp up ore output by next year, but their production capacity is limited by a number of factors.
Courtesy: Kedia Commodities