Nickel On MCX Settled Down - Ways2Capital

Nickel on MCX settled down -1.15% at 568.8 tracking LME prices ended down 0.6 percent at as weaker than expected German manufacturing data that pointed to lower demand. Global nickel miners are coming under renewed pressure to cut costs or close capacity as a flood of cheap ore pushes prices to one-year lows. Japan's economic growth in the January-March period was severely revised down from the original estimate because of a downward adjustment in business inventories, the Cabinet Office said, underscoring the fragility of its export-led expansion.

China's economy is likely to have remained on a stable footing in May, buoyed by solid gains in trade and investment as economic ties with the United States take a positive turn and infrastructure spending cushions domestic growth. Nickel ore inventories at seven major Chinese ports kept increasing in the week. Inventories at the seven ports increased slightly over this past week, up 30,000 tonnes.

This past week, prices of medium and high-grade nickel ore, both for spot and future delivery, extended declines as ore demand from small and medium NPI producers remained weak, despite that high-grade NPI prices were stable, with mainstream price range lower. Jiangsu Delong Nickel Industry is going to restart two 60-tonne AOD refining furnaces at its initial stage of production resumption.

The two will produce 50,000-60,000 tonnes of stainless steel per month, and will need 4,000-4,800 tonnes of nickel (Ni content), and about 20,000 tonnes of ferrochrome. Technically market is under fresh selling as market has witnessed gain in open interest by 3.05% to settled at 46284 while prices down -6.6 rupees, now Nickel is getting support at 565.2 and below same could see a test of 561.6 level, And resistance is now likely to be seen at 575.3, a move above could see prices testing 581.8.

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Suhani Verma

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