Nickel on MCX settled up 0.05% at 596.70 recovered from the day's low as short covering seen after U.S. dollar lost ground against the euro in the wake of the French election, making commodities more affordable for buyers paying with other currencies. Pressure seen on Dollar as euro edged up after hitting a 5-1/2 month high on Tuesday as traders digested centrist candidate Emmanuel Macron's victory in the first round of France's presidential election on Sunday. While US data released in yesterday's session revealed that US consumer confidence fell from a more than 16-year high in April, but a surge in new home sales to an eight-month high last month suggested underlying strength in the economy despite an apparent sharp slowdown in growth in the first quarter. In recent months, news stories on nickel have been dominated by concerns over supply of nickel ores and concentrates from the Philippines and Indonesia.
In the Philippines, an environmental crackdown led to the closure of 23 mines and the suspension of a further eight, which together account for an estimated 49% of nickel production in the country in 2016. While miners have launched legal action challenging the decisions, the closure is potentially significant to Chinese NPI miners that depend on imported ore. In Indonesia, following the country's 2014 ban on the export of unprocessed mineral ores and concentrates, the government announced in January that it would ease restrictions.
The ban had been intended to promote the development of domestic smelting capacity. Technically market is getting support at 592.5 and below same could see a test of 588.3 level, And resistance is now likely to be seen at 599.8, a move above could see prices testing 602.9.
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