MCX Zinc under long liquidation; Support seen at 191.2
MCX Aluminium under short covering; Support seen at 143.8
MCX Mentha Oil under fresh buying; Support seen at 1607.8
MCX Copper under long liquidation
NCDEX Chana under long liquidation; Resistance seen at 4159
Technically Nickel market is getting support at 913.6 and below same could see a test of 900.8 level, And resistance is now likely to be seen at 943.1, a move above could see prices testing 959.8.
Nickel on MCX settled down 2.99% at 926.50 as long liquidation seen on a stronger US dollar and also pressure seen news of a domestic expansion of nickel pig iron (NPI) capacity lowered LME nickel by 3.04% and the SHFE Nickel dropped by 2.49%, despite the current shortage of NPI in domestic markets.
Slow trades of stainless steel this week also depressed nickel prices. Meanwhile new smelting capacity coming online in China and Indonesia. It is reported that Delong’s project in Indonesia has got its 11th rotary kiln-electric furnace (RKEF) ignited and the project is likely to wholly come online in June.
For Shandong Xinhai, its four newly-commissioned 48,000-KVA RKEFs have reportedly seen output as of March 6, which is estimated to grow ferronickel production by 28,000-32,000 mt per month. While China’s foreign exchange reserves rose to US$3.09 trillion by the end of February, official data showed Thursday.
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This increased US$2.3 billion, or 0.1% from the end of January, according to the State Administration of Foreign Exchange (SAFE).
Factors including the increase in the US dollar index, changing asset prices, exchange rate conversion and asset price changes caused the slight gain of forex reserves, said SAFE spokesperson Wang Chunying.
Now traders are eyeing data from China which will release data on its February’s trade balance, and the US will release its nonfarm payroll employment and the jobless rate for last month.
Trading Ideas:
–Nickel trading range for the day is 900.8-959.8.
–Nickel dropped dragged by news of new smelting capacity coming online in China and Indonesia.
–LME nickel stocks have declined for 10 days in a row to under 200,000 tonnes, while global exchange inventories of the metal were 47 percent lower year-on-year.
–Data from the INSG shows the nickel market deficit was 46,000 tonnes in 2016, 115,000 tonnes in 2017 and 127,000 tonnes last year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
