MCX Zinc under short covering; Support seen at 176.9
MCX Copper may move in a range of 411.9-425.7
MCX Natural Gas under fresh selling; Support seen at 189.5
MCX Crude Oil under fresh buying; Resistance seen at 4754
MCX Silver under short covering; Support seen at 38157
Technically MCX Nickel is getting support at 918.3 and below same could see a test of 910.2 level, And resistance is now likely to be seen at 934.6, a move above could see prices testing 942.8.
Nickel on MCX settled up 0.32% at 926.3 as fundamentals remain robust on low inventories and firm prices of stainless steel. The global nickel market deficit widened to 15,400 tonnes in May from a revised deficit of 14,700 tonnes in the previous month, the International Nickel Study Group said.
During the first five months of the year, the deficit widened to 69,600 tonnes from 50,100 tonnes in the same period of 2017, the data showed. Nickel ore inventory across all Chinese ports increased by 360,000 wmt from a week ago to 9.85 million wmt as of Friday July 20, data showed.
In metal content, inventories grew about 3,000 mt on the week and stood at 82,000 mt. Stocks across seven major Chinese ports rose by 280,000 wmt to 6.97 million wmt. The Philippines’ nickel ore exports may drop to 30-35 million tonnes this year from 36 million tonnes in 2017 amid weaker prices, the head of a nickel mining industry group said.
The Philippines is the world’s No. 2 nickel ore supplier after Indonesia, shipping the bulk of its output to top buyer China where it is used to make stainless steel. Philippine President Rodrigo Duterte last week warned he would soon halt mining in the Southeast Asian nation because of the environmental damage it has caused.
There are 50 operating mines in the Philippines, 30 of which extract nickel ore. But the industry contributes less than 1 percent to gross domestic product, with only 3 percent of 9 million hectares identified by the state as having high mineral reserves.
–Nickel trading range for the day is 910.2-942.8.
–Nickel prices gained as fundamentals remain robust on low inventories and firm prices of stainless steel.
–The global nickel market deficit widened to 15,400 tonnes in May from a revised deficit of 14,700 tonnes in the previous month, INSG said.
–Nickel ore inventory across all Chinese ports increased by 360,000 wmt from a week ago to 9.85 million wmt as of Friday July 20, data showed.
Courtesy: Kedia Commodities