FREE COMMODITY NICKEL NEWS 02-01-17
Nickel prices ended with day with losses despite supply-side issues in Indonesia and the Philippines have again taken centre stage in the nickel market. After Indonesia implemented a ban on nickel ore exports in January 2014, Chinese enterprises have stepped up their efforts to establish nickel smelters in Indonesia to meet growing nickel pig iron (NPI) demand from China’s stainless steel sector. Prior to the ban in 2014, Indonesia was the top supplier of laterite ore to China, supplying more than 50% of Chinese imports. Since then, almost all of the NPI produced by China-backed projects in Indonesia has been delivered to China in order satisfy the country’s rising demand, while Chinese domestic NPI production has largely remained flat this year. Chinese stainless steel production reached 24.79 million tonnes in 2016, an increase of 11.87% year-on-year, according to Chinese information provider Chinese United Steel’s data. Meanwhile, NPI production from China-back projects in Indonesia has increased by 213% year-on-year in 2016, with Tsingshan Group’s rotary kiln electric furnace (RKEF) project contributing the most to this growth. Chinese-funded Indonesian NPI projects are expected to produce 95,900 tonnes of nickel metal in 2016, up from 30,600 tonnes in 2015, marking a 213% year-on-year increase, according to statistics from Chinese Merchant Futures (CMF). Technically market is under fresh selling as market has witnessed gain in open interest by 70.04% to settled at 16564 while prices down -8.2 rupee, now Nickel is getting support at 679.3 and below same could see a test of 675.1 level, And resistance is now likely to be seen at 691, a move above could see prices testing 698.5.
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