Nickel on MCX settled down -0.78% at 658.4 tracking LME prices falling 1.4 percent to end at $10,020, pulled down by losses in Chinese steel futures. Prices also remained under pressure on concerns that U.S. President Trump had yet to implement mooted tax cuts and infrastructure spending. The INSG estimates that global nickel market was in a small deficit of 1,130 tonnes in January 2017 after recording a deficit of 41,520 tonnes in the whole of 2016.
The INSG expects a deficit of 66,000 tonnes this year amid growing demand from the stainless steel sector. Nickel experienced upside earlier in the month when Philippine President Rodrigo Duterte threatened to stop all mining in the world’s biggest exporter of nickel. This comes after the Philippines suspended mining activities at numerous nickel mines found to be in violation of environmental regulations.
There are a few possible reasons for nickel’s muted reaction to the potential for an all out mining ban. It could be that traders doubt that Duterte would enforce such strict regulations or that the resumption of exports from Indonesia will compensate for a hard stop to nickel exports from the Philippines. Either way, with nickel prices significantly higher than they were one year ago, traders are finding little reason to be any more bullish particularly with the potential for Indonesia to restart nickel shipments any day.
Technically market is under fresh selling as market has witnessed gain in open interest by 4.64% to settled at 25794 while prices down -5.2 rupees, now Nickel is getting support at 651.1 and below same could see a test of 643.8 level, And resistance is now likely to be seen at 663.9, a move above could see prices testing 669.4.