MCX Nickel market under short covering; Support seen at 694.6
Commodity Online | October 17 2016
UPDATED 10:58:12 IST

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Nickel on MCX settled up 0.22% at 697.9 getting some support after the Philippines' environment minister said she wanted to ban new mines to clamp down on damage from the minerals industry in the country. Suspensions of Philippine nickel mines over environmental concerns have underpinned a rally in nickel which headed for a 2.50 percent climb on weekly basis.

Indonesia will "almost definitely" keep in place a ban on nickel ore and bauxite exports, the country's mining minister said, just days after it had considered lifting the restriction to raise extra cash in an overhaul of mining rules. Indonesia banned metal ore exports in early 2014 to encourage miners to build smelters to create jobs and shift exports from raw materials to higher-value finished metals.

But the government has been comprehensively reevaluating the domestic mineral processing requirements, amid concerns that the current deadline for full processing of all minerals by 2017 may not work for certain metals. Indonesia has already floated plans to allow 15 million tonnes low grade ore to leave the country for processing elsewhere. China’s overall exports dropped 10% and imports slipped 1.9% in September, both on a year-on-year basis in dollar-denominated terms.

Describing the international environment as “severe and complicated”, Chinese customs said in a statement that China’s export development continues to face major difficulties amid a decline in trade with its main partners such as the US and ASEAN countries. Technically market is under short covering as market has witnessed drop in open interest by -4.66% to settled at 11777 while prices up 1.5 rupee, now Nickel is getting support at 694.6 and below same could see a test of 691.3 level, and resistance is now likely to be seen at 700.1, a move above could see prices testing 702.3.

Trading Ideas:
--Nickel trading range for the day is 691.3-702.3.
--Nickel gained getting some support after the Philippines' environment minister said she wanted to ban new mines to clamp down on damage.
--Indonesia will "almost definitely" keep in place a ban on nickel ore and bauxite exports, the country's mining minister said.
--Indonesia has already floated plans to allow 15 million tonnes low grade ore to leave the country for processing elsewhere.

Courtesy: Kedia Commodities

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