Nickel On MCX Settled Up 0.48%

Nickel on MCX settled up 0.48% at 584.8 on short covering tracking LME prices closed up 0.4 percent at $9,075 a tonne after trade data in the week showed that the Philippines is ramping up ore exports to China, fuelling concerns of oversupply. Also pressure seen as Moody’s Investors Services has cut China’s debt rating to A1 from Aa3 – the first cut since 1989. 

Also sentiments also dropped after the news that BHP Billiton is seeking environmental approval to dig two new mines to extend the life of its Nickel West unit in the state of Western Australia, which is facing a shortfall in ore supply. Nickel West, which produces about 5 percent of the world's nickel metal, has lodged an application with the Environmental Protection Authority of Western Australia to clear 842 hectares (2,080 acres) for two open pit mines, according to the authority's website. 

One stainless steel mill in southwest China adjusted production plan from April given poor demand in the stainless steel market. The plant, originally producing about 45,000-50,000 tonnes of stainless steel per month, has shifted to producing common-carbon steel. After the shift, the plant’s monthly stainless steel output is about 30,000 tonnes. Growth of the U.S. economy in the first quarter was revised even higher expected, according to official data. 

The second estimate of first quarter (Q4) growth domestic product (GDP) showed growth of 1.2%, compared to an initial reading of 0.7%. Technically now Nickel is getting support at 580.2 and below same could see a test of 575.5 level, And resistance is now likely to be seen at 588, a move above could see prices testing 591.1.

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Suhani Verma

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