Nickel on MCX settled down -1.12% at 637.10 tracking weakness from LME nickel which sank 2.2 percent extended selling from last week when the Philippines said it would allow miners who had been ordered shut on environmental concerns to export stockpiled material. Receding worries about supply shortages saw nickel close 1 percent down at $9,770 a tonne, having touched $9,655, its lowest since Jan. 30.
Also pressure seen after President Donald Trump's failure to push through a healthcare reform bill prompted investors to question the extent to which he can deliver on growth policies that have been priced in since his election. Despite additional closures last month and the potential for more, nickel prices fell this month.
It could be that traders doubt that Duterte will enforce such strict regulations, but it also has to do with fears that the resumption of exports from Indonesia will compensate for any supply shortfall in The Philippines. It’s still uncertain how much nickel ore Indonesia may export. While the country has relaxed its ban, and now allows smelters to export surplus ore with less than 1.7% nickel, shipments have yet to restart.
Now in the week ahead, investors will be continuing to monitor political developments in the U.S., as Trump’s promised tax reforms come into focus. Expectations that the Trump administration would spur growth and inflation through fiscal stimulus pushed the dollar to 14-year highs in the weeks after the election.
But the greenback has weakened in recent week as it became apparent that the White House would have difficulty in delivering on its legislative agenda. Technically market is getting support at 628 and below same could see a test of 618.8 level, And resistance is now likely to be seen at 644, a move above could see prices testing 650.8.