MCX Nickel market under short covering
Commodity Online | September 22 2016
UPDATED 14:05:18 IST

MCX Mentha Oil likely to move in a range of 930.1-963.1

MCX Aluminium may trade between 138.9-147.9 levels

MCX Nickel likely to move in a range of 1023.1-1083.9

MCX Zinc under short covering; Resistance seen at 186.1

MCX Copper under fresh buying; Resistance seen at 515

Nickel on MCX settled up 0.45% at 690.30 gained in the line of expectation tracking firmness from LME Nickel which rose 0.15 percent to settled at $10,325 a tonne after the Philippines said it would suspend more than 10 additional mines in an ongoing environmental crackdown on the sector. Prices may see capped near to 700 level as Philippines Govt once again delayed for a second time the announcement of which companies will be shut, to Sept. 26.

Meanwhile sentiments improved after the update that Glencore, the commodities trader and miner, expects nickel prices to climb through 2018 as demand outstrips supply, assuming Indonesia continues its policy of curbing ore exports and encouraging local processing. As per Glencore's company’s head of nickel “We believe we’ve seen the bottom, both in terms of the actual spot prices experienced earlier this year and also in terms of the annual average we will see in 2016,” said Kenny Ives, . “We expect spot prices to be higher and we also expect the average to be higher,” he said in an interview. Nickel prices have advanced 16 percent this year on the London Metal Exchange as global stockpiles declined.

The Philippines, the world’s largest shipper of mined nickel used in stainless steel, is carrying out an environmental audit and closing mines that don’t meet international standards, curbing supply. The global deficit will probably be about 100 000 metric tons in 2016 in terms of nickel metal, and shortages will continue going forward, said Ives, who declined to give specific forecasts. Technically market is under short covering and getting support at 684.4 and below same could see a test of 678.6 level, and resistance is now likely to be seen at 694.9, a move above could see prices testing 699.6.

Trading Ideas:
--Nickel trading range for the day is 678.6-699.6.
--Nickel gained as support seen after the Philippines said it would suspend more than 10 additional mines in an ongoing environmental crackdown on the sector.
--Nickel prices have advanced 16 percent this year on the London Metal Exchange as global stockpiles declined.
--Chinese stainless steel production totalled 13.6 million tons in the first seven months of the year compared with 12.6 million tons a year earlier.

Courtesy: Kedia Commodities