Nickel on MCX settled flat at 646.20 remained unchanged while LME Nickel dropped 0.40% to $9,985.00 a metric ton. Indonesia's state-owned miner Aneka Tambang (Antam) has been granted an initial approval to export up to 2.7 million tonnes of nickel ore over the next 12 months, a mining ministry official said. Indonesia was the world's top nickel ore exporter before it imposed a ban on unprocessed nickel ore exports in 2014 in a bid to encourage miners and customers to invest in a domestic processing industry.
Indonesia's ore export ban has supported nickel prices and a resumption of its shipments could hurt prices of the metal. Antam said in February it had stockpiles of an estimated 5 million wet metric tonnes of low-grade nickel ore that was ready to ship. The Chinese economy expanded at a faster pace in March, with a key measure of services activity rising at the fastest rate in two-and-a-half years.
Beijing’s official manufacturing purchasing managers’ index (PMI) strengthened to 51.8 in March from 51.6 in February, on a scale where 50 separates expansion from contraction. Japanese industrial production rebounded sharply in February, picking up where it left off at the end of last year and signaling that domestic producers were slowly regaining momentum. Industrial production climbed 2% compared to January, the Ministry of Economy, Trade and Industry said in a preliminary estimate.
Technically market is under long liquidation as market has witnessed drop in open interest by -18.56% to settled at 15882, now Nickel is getting support at 640.9 and below same could see a test of 635.5 level, And resistance is now likely to be seen at 652.2, a move above could see prices testing 658.1.