MCX NICKEL NEWS : 09.01.2017
Nickel steadied as investors squared positions after a strong U.S. payrolls report, even as they kept an eye on a stronger dollar and tried to gauge to what extent the recovery in China and United States had been priced in. The impending moderation of Indonesia's mineral ore export ban and consequent resumption of nickel exports will increase global nickel supply. Prior to the country's mineral ore export ban was implemented in early 2014, Indonesia was the world's second largest supplier of nickel ore at 16 .7% of global production in 2013. As a result, nickel prices could break below support currently coming at $10 000/t and head lower before increasing modestly later on in 2017. BMI maintained its 2017 nickel price forecast of $10 500/t on average as prices will be supported by China's continued and intensified fiscal support for the construction sector this year. This is because nickel is used in the production of stainless steel, which is used widely in the transport and construction sector, BMI stated. LME net stocks were unchanged at 370,920 tonnes but cancelled warrants fell 1,560 tonnes to 125,322 tonnes. China's foreign exchange reserves fell for a sixth straight month in December to the lowest since early 2011, but held just above the critical $3 trillion level, as authorities stepped in to support the yuan ahead of U.S. President-elect Donald Trump's inauguration. Technically market is under short covering as market has witnessed drop in open interest by -1.79% to settled at 16712 while prices up 4.4 rupee, now Nickel is getting support at 694 and below same could see a test of 687.6 level, And resistance is now likely to be seen at 704.8, a move above could see prices testing 709.2.
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Nickel steadied as investors squared positions after a strong U.S. payrolls report, even as they kept an eye on a stronger dollar and tried to gauge to what extent the recovery in China and United States had been priced in. The impending moderation of Indonesia's mineral ore export ban and consequent resumption of nickel exports will increase global nickel supply. Prior to the country's mineral ore export ban was implemented in early 2014, Indonesia was the world's second largest supplier of nickel ore at 16 .7% of global production in 2013. As a result, nickel prices could break below support currently coming at $10 000/t and head lower before increasing modestly later on in 2017. BMI maintained its 2017 nickel price forecast of $10 500/t on average as prices will be supported by China's continued and intensified fiscal support for the construction sector this year. This is because nickel is used in the production of stainless steel, which is used widely in the transport and construction sector, BMI stated. LME net stocks were unchanged at 370,920 tonnes but cancelled warrants fell 1,560 tonnes to 125,322 tonnes. China's foreign exchange reserves fell for a sixth straight month in December to the lowest since early 2011, but held just above the critical $3 trillion level, as authorities stepped in to support the yuan ahead of U.S. President-elect Donald Trump's inauguration. Technically market is under short covering as market has witnessed drop in open interest by -1.79% to settled at 16712 while prices up 4.4 rupee, now Nickel is getting support at 694 and below same could see a test of 687.6 level, And resistance is now likely to be seen at 704.8, a move above could see prices testing 709.2.
