Nickel on MCX settled up 1.13% at 664.60 as support seen after activity in China's manufacturing sector unexpectedly expanded at its fastest pace in nearly two years in August as construction boomed, suggesting the economy is steadying in response to stronger government spending. LME Nickel ended up 1.5 percent at $9,910. Meanwhile the global nickel market will discover the severity of the Philippines’ nationwide mining audit next Thursday as President Rodrigo Duterte’s government presents the findings of the checkup and announces support for communities affected by any further suspensions.
The audit in the world’s largest mined nickel supplier has been completed after 16 teams fanned out across the country to assess compliance with environment and welfare rules, according to Leo Jasareno, the official in charge of the examination. The results and community-support program will be presented by Environment Secretary Gina Lopez, Jasareno said in an interview in Manila.
The crackdown helped to lift nickel to the highest level in a year last month as some mines were suspended, tightening global supplies and fanning speculation that more significant disruption could follow. Now investors looked ahead to data on U.S. Non farm payrolls on Friday to see if the economy is strong enough to withstand a rate hike in the coming weeks. Technically market is under short covering getting support at 657.6 and below same could see a test of 650.6 level, and resistance is now likely to be seen at 669.8, a move above could see prices testing 675.
--Nickel trading range for the day is 650.6-675.
--Nickel gained after China’s official factory gauge unexpectedly rose last month, signaling improved demand.
--China’s economic stabilization remains intact even as credit growth slows and the central bank refrains from cutting interest rates.
--Nickel daily stocks at Shanghai exchange came down by 402 tonnes.
Courtesy: Kedia Commodities