Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 10.63% to settled at 1374 while prices down 6.3 rupees.
Now MCX Nickel is getting support at 1492 and below same could see a test of 1481.5 levels, and resistance is now likely to be seen at 1516.4, a move above could see prices testing 1530.3.
Nickel yesterday settled down by 0.42% at 1502.6 as the national nickel pig iron (NPI) output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content. The month-on-month growth rate is still declining compared with the previous years.
The output of high-grade NPI stood at 25,700 mt (Ni content) in October, up 2% on the year; and the output of low-grade NPI was 5,100 mt (Ni content), dropping again on the month.
China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month. The average operating rate stood at 66%.
The actual output in October did not decrease, and the output of major refineries in Gansu was relatively stable. Nickel prices in 2022 are seen falling from this year’s multi-year highs, with the global market expected to swing into a surplus as production recovers from pandemic disruptions.
A forecast 45,000-tonne global supply glut next year is pressuring price expectations, with 12% growth in output likely to outpace that of demand, estimated at 10%.
NPI production requires a lot of power and China has been curbing output of highly energy-intensive sectors to reduce its carbon emissions and reserve electricity for residents ahead of the winter.
Trading Ideas:
–Nickel trading range for the day is 1481.5-1530.3.
–Nickel prices dropped as NPI output picked up slightly in October 2021, rising by 0.12% year-on-year to 30,720 mt in nickel content.
–Nickel prices seen falling in 2022 due to surplus
–China’s refined nickel output stood at 14,500 mt in October, up 1.48% or 212 mt month-on-month. The average operating rate stood at 66%.
Courtesy: Kedia Commodities
Source: Comodity Online
