Nickel on MCX settled down -0.73% at 652 traded in the range while LME Nickel price ended unchanged at $10,180, balanced by potentially bullish and bearish news. A suspended Philippine nickel miner has asked the president to allow it to ship ore stockpiles after some cargoes were seized. Cyclonic winds and heavy rain buffeted New Caledonia, prompting residents of the French South Pacific territory to seek shelter and halt mining of nickel, its most important export.
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. Technically market is under long liquidation as market has witnessed drop in open interest by -0.35% to settled at 27303 while prices down -4.8 rupees, now Nickel is getting support at 648.3 and below same could see a test of 644.7 level, And resistance is now likely to be seen at 657.2, a move above could see prices testing 662.5.