Nickel on MCX settled up 1.84% at 735.7 as support seen after update that the Philippines could consider banning exports of unprocessed minerals such as nickel in an effort to promote value addition in the mining sector, a senior environment official said. "It is one of the options that has to be considered not only by the DENR (Department of Environment and Natural Resources) but by the entire government," DENR Undersecretary Maria Paz Luna told reporters.
Ms Luna spoke after a meeting with other government officials tasked to conduct a second review of 28 mines ordered closed or suspended by the environment ministry. Prices remained supported on the potential for supply disruption from the world's top nickel ore exporter, but miners said following in the foosteps of neighbouring Indonesia wouldn't be viable without big government incentives. Data from China this week, including manufacturing and service sector activity, cast doubt over the sustained growth of the world's second-largest economy.
Although the factory activity in China expanded faster than expected, there were signs that the construction sector was slowing. There are some doubts starting to creep in about how sustainable Chinese demand is going to be this year. Mining has come into sharp focus in the Philippines in recent months after the country's firebrand environment minister, Regina Lopez, ordered the closure of more than half of the country's mines to protect watersheds, prompting an industry backlash.
Her decision is now being reviewed by the government's Mining Industry Coordinating Council amid concerns over its financial impact and criticism that due process was not followed. Technically now Nickel is getting support at 728.6 and below same could see a test of 721.6 level, And resistance is now likely to be seen at 739.8, a move above could see prices testing 744.