Nickel ended with flat node as prices are not promising considering sufficient nickel inventories and resumption of nickel ore exports by the Philippines. China’s refined nickel output was 12,900 tonnes in April. Output at Jinchuan Group and Yantai Kaishi Industry was low in April due to sluggish prices, and production at other smelters was normal. Production conditions at domestic nickel producers are expected to be largely unchanged in May on a monthly basis. China’s refined nickel output is expected to be at 12,500-13,500 tonnes in May.
China’s NPI output is expected to keep falling in May following production cuts at domestic NPI producers. China’s NPI output dropped in April as big losses from high costs led to production cuts or suspension at domestic high-grade NPI producers, especially those in Inner Mongolia and Shandong. Production conditions at domestic low-grade NPI producers were mixed. Production cuts or suspension at some high-grade NPI producers are continuing as losses remain.
Weak demand have triggered production reduction at both some low-grade NPI and stainless steel integrated mills and low-grade NPI plants. Nickel ore inventories at seven major Chinese ports dropped in the week. Inventories at the seven ports, after slightly growing for two weeks in a row, fell by by 80,000 tonnes last week.
Technically market is under short covering as market has witnessed drop in open interest by -1.54% to settled at 35184 while prices up 0.8 rupees, now Nickel is getting support at 594.9 and below same could see a test of 590.6 level, And resistance is now likely to be seen at 603.4, a move above could see prices testing 607.6.