On MCX settled down -2.75% at 654.10 tracking weakness from LME Nickel which ended 2.1 per cent lower at $US10,080 a tonne as Nickel traders cut there long position and sit with a wait-and-see mode to see what the outcome will be from the meeting between US President Donald Trump and China’s President Xi Jingpin.
China has been the target of anti-dumping lawsuits, and this is expected to be a hot topic in the meeting of the two world leaders. The timing for the nickel market is interesting; according to a Reuters report the EU has set anti-dumping duties on imports of hot-rolled flat steel products from China at a higher rate than those already in place; final duties have been set at between 18.1% 35.9% for five years for metal coming from a number of Chinese producers.
With nickel an important component of steel products, regulations on the steel industry will, in turn, affect nickel prices. The US has already enforced a number of tariffs on Chinese steel imports, a development that China is not happy about. This will likely be a major topic of discussion between Xi and Trump. Overall, nickel prices have seen a great deal of support in 2016 and into 201 from the Philippines’ mining crackdown.
With a number of mines shut down in the country due to alleged violations of environmental regulations. However, these closures could be reversed if the country’s lawmakers do not confirm Regina Lopez as Environment Minister. Lopez, with President Rodrigo Duterte’s support, has pushed the mining inspections and closures. Technically now Nickel is getting support at 645.9 and below same could see a test of 637.7 level, And resistance is now likely to be seen at 667.3, a move above could see prices testing 680.5.