Technically Nickel market is under fresh selling as market has witnessed gain in open interest by 2.93% to settled at 1509 while prices down 2.6 rupees.
Now MCX Nickel is getting support at 1529.4 and below same could see a test of 1520.3 levels, and resistance is now likely to be seen at 1552.4, a move above could see prices testing 1566.3.
Nickel yesterday settled down by 0.17% at 1538.6 as China’s, the Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate.
Philippine nickel mine will be decommissioned in end-2021, global nickel supply may tighten further. Berong nickel mine in the Philippines is expected to run out of resources before the end of the year, and the mine will be decommissioned and repaired.
According to government data, from January to September this year, the production of nickel in the Philippines increased by 29% to 325,848 mt on the year. Berong nickel mine was put into production in October 2006 and has so far yielded 10.3 million wmt of nickel ore output.
The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed.
During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes in the same period last year, Lisbon-based INSG added.
Data showed that the purchasing manager’s index (PMI) for downstream nickel industries, including stainless steel, electroplating, alloy and battery, stood at 49.92 in November. In China, the Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate, indicating a slowing manufacturing recovery.
Trading Ideas:
–Nickel trading range for the day is 1520.3-1566.3.
–Nickel prices remained under pressure as China’s Caixin manufacturing PMI for November recorded 49.9, 0.7 lower than the estimate.
–Data showed that the PMI for downstream nickel industries, stood at 49.92 in November.
–Global nickel market deficit shrinks in Sept to 5,200 tonnes – INSG.
Courtesy: Kedia Commodities
Source: Comodity Online
