Nickel on MCX settled up by 4.16% at 678.70 gained after the reports suggest that the Philippines could suspend more nickel mines following an audit by the Philippines Department of Natural Resources (DENR), the results of which is due Thursday. Nickel for delivery in three months jumped 4.4 percent to settle at $10,150 a metric ton on the LME marking the biggest gain since July 12. The commodity lost 6.2 percent last week, the most since November, after the Philippines postponed the announcement of its audit result. Prices slipped half a percent to $10,095 a tonne.
The Philippines could suspend at least 10 more mines under an environmental crackdown, the minister in charge of mining said, in a move that threatens to halt the operations of half the mines in the world's top supplier of nickel ore. Nickel has climbed 15 percent in 2016 as the Philippines shutters sites for failing to meet environmental standards, threatening supplies from the nation, the top supplier of the mined metal.
The government could tell more mines to stop operating, Environment and Natural Resources Secretary Gina Lopez said. Traders will also be playing close attention to central bank meetings this week, including those of the Fed and the Bank of Japan. The FOMC committee, which meets from Tuesday, will announce policy along with its latest economic projections on Wednesday. Technically market is under short covering and getting support at 661.3 and below same could see a test of 643.9 level, and resistance is now likely to be seen at 687.8, a move above could see prices testing 696.9.
--Nickel trading range for the day is 643.9-696.9.
--Nickel rallied more that 4% as the Philippines said it may suspend more mines after the completion of a nationwide audit.
--The Philippines could suspend at least 10 more mines under an environmental crackdown on the sector, the minister in charge of mining said.
--China has boosted its imports of nickel ore, with stockpiles at ports standing at more than 1.5 million tonnes and the highest since last October.
Courtesy: Kedia Commodities