Zinc market under short covering; Support seen at 177.5
Copper may trade in a range between 409-427.4 levels
MCX Aluminium under fresh selling; Resistance seen at 139.7
MCX Mentha Oil under short covering; Support seen at 1523.8
Natural Gas market under fresh buying; Support seen at 194.5
Technically MCX Nickel is getting support at 907.9 and below same could see a test of 889.7 levels and resistance is now likely to be seen at 936.5, a move above could see prices testing 946.9.
Nickel on MCX settled up 1.08% at 926.2 recovering from lows on short covering as ow inventories and robust demand for stainless steel buoyed prices. The Philippines’ environment ministry will decide whether to permanently shut four mines that failed a review for compliance with state regulations or offer them reprieve, a government official said.
Chinese authorities are mulling details of production cuts in the steel industry across the smog-prone Beijing-Tianjin-Hebei region and nearby areas, during the upcoming winter season. Steel mills across six key cities, Tianjin, Shijiazhuang, Tangshan, Handan, Xingtai and Anyang, will be required to cut capacity by half during the heating season from November 15, 2018 to March 15, 2019.
Mills in the remaining cities in the region will need to shut no less than 30%. Tianjin and Xingtai are new additions to the list this year. Nickel stocks in Shanghai bonded warehouses grew 6% from a week ago to 61,000 mt as of Friday August 3.
Arrivals of cargoes for previously signed forward contracts accounted for the increase. A closed import arbitrage window earlier this week also hindered some materials from flowing out of the bonded areas to the domestic market. Japanese trading house Sumitomo Corp expects that nickel output at its Ambatovy project in Madagascar will likely fall short of its earlier target of 48,000 tonnes in the year to March 2019.
Sumitomo said in May that it expected around 48,000 tonnes of nickel output at the Ambatovy nickel-cobalt project this financial year based on the assumption of an average operation rate of 80 percent.
Trading Ideas:
–Nickel trading range for the day is 889.7-946.9.
–Nickel gained recovering from lows on short covering as ow inventories and robust demand for stainless steel buoyed prices.
–Chinese authorities are mulling details of production cuts in the steel industry across the smog-prone Beijing-Tianjin-Hebei region, during the upcoming winter season.
–Nickel stocks in Shanghai bonded warehouses grew 6% from a week ago to 61,000 mt.
Courtesy: Kedia Commodities
Source: Commodityonline.com
