MCX Settled Down -0.31% Nickel

MCX settled down -0.31% at 651 after LME prices dropped by 1 percent at $10,030 on prospects of rising Indonesian supply. 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. There was news that 4 Indonesian nickel ore mining firms are applying for ore export quotas, and Antam got the initial clearance for Indonesian nickel ore exports. 

But, the export quota of 2.70 million WMT is much below its application amount of 6 million WMT, raising market doubts over 2017 nickel ore shipments from Indonesia, world’s number one nickel ore supplier before its 2014 export ore ban.Prices for medium and high-grade nickel ore in China’s domestic market are expected to hold largely stable in the coming week. Nickel ore inventories at seven major Chinese ports kept falling last week. 

Nickel ore inventories at seven major Chinese ports were down 100,000 tonnes last week. At present, domestic high-grade NPI producers are facing tough conditions, weakening their acceptance to high-priced ore. Supply of medium and high-grade nickel ore is expected to remain tight, and such conditions are not expected to improve in the short term despite after the end of monsoon season in Surigao, the Philippines. 

Activity in China's manufacturing sector unexpectedly grew at its fastest pace in nearly five years in March, adding to evidence that the world's second-largest economy has gained momentum early this year, an official report showed. Technically now Nickel is getting support at 644.8 and below same could see a test of 638.7 level, And resistance is now likely to be seen at 657.7, a move above could see prices testing 664.5.

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Suhani Verma

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