Now MCX Nickel is getting support at 1334.8 and below same could see a test of 1322.6 levels, and resistance is now likely to be seen at 1353.9, a move above could see prices testing 1360.8.
Nickel yesterday settled up by 1.41% at 1347 amid strong Chinese demand and near record-low inventories in warehouses tracked by ShFE.
The market sentiment was perturbed by the news calling on Indonesian government to limit the smelting plant construction and exports of the NPI and FeNi with low added value. However, Indonesian government has not carried out clear policy.
The news is still worth attention as exporting nickel products with higher added value has been Indonesia’s policy orientation in recent years. The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March, data from the International Nickel Study Group (INSG) showed.
During the first four months of the year, the nickel market saw a deficit of 34,900 tonnes compared with a 48,000 tonnes surplus in the same period last year, Lisbon-based INSG added.
The U.S. current account deficit increased to a 14-year high in the first quarter as an acceleration in economic growth drew in imports, and the gap could remain wide, with the United States leading the global economic recovery from the COVID-19 pandemic.
The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, rose 11.8% to $195.7 billion last quarter.
--Nickel trading range for the day is 1322.6-1360.8.
--Nickel rose amid strong Chinese demand and near record-low inventories in warehouses tracked by ShFE.
--Global nickel deficit narrows slightly in April.
--The market sentiment was perturbed by the news calling on Indonesian government to limit the smelting plant construction and exports of the NPI.
Courtesy: Kedia Commodities