Nickel supply will outpace demand this year as new projects start and demand growth in China slows after the government tightened monetary policies to curb inflation. World supply of the metal, used for corrosion resistance in stainless steel, will exceed demand by 24,000 metric tons from a deficit of 57,000 tons in 2010. Nickel was the second-best performer on the London Metal Exchange last year, gaining 34 percent as demand from China for stainless steel in homes and buildings increased. For today market is looking for the support at 1181.3, a break below could see a test of 1176.4 and where as resistance is now likely to be seen at 1189.8, a move above could see prices testing 1193.4.

Trading Ideas:

Nickel trading range is 1176.4-1193.4.

Nickel supply will outpace demand this year as new projects start and demand growth in China slows

Nickel looks to take support at 1174 and resistance is at 1198 level

Spread between nickel JAN & FEB contracts yesterday traded in the range of 6.60 - 9.8.