Nickel on MCX settled down -1.63% at 694.80 falling on concerns over demand, with investors in the base metal market awaiting an announcement from the Philippines on closure of mines. Prices dropped on profit booking after update from Citigroup Inc. that forecast fourth-quarter price declines and said the impact of supply disruptions from the Philippines will probably be "underwhelming." The world's top miner of nickel ore is shutting operations that fall short of environmental or welfare standards. Ten mines have been suspended so far and Environment Secretary Gina Lopez said last week more than 10 additional suppliers face closure. Citigroup said concerns about disruptions are misplaced. The metal used in stainless steel dropped as much as 2.3 percent on the LME. It surged 9.6 percent last week, the most since July 1, and has gained 19 percent this year amid concern about Philippine disruptions. The bank expects five or six additional mines to be closed by the Philippines, which will be offset by increased ore shipments from the country's bigger miners and by Indonesia. While traders are still prices outlook to be firm as market expect on Tuesday to announce another 12 suspensions for environmental violations following an audit of all the country's operating mines. Support also seen after the update that Indonesian mined nickel production slumped from 834,000 tonnes in 2013 to 177,000 tonnes in 2014, according to the INSG. Also Global mine supply is still down on year-earlier levels to the tune of 6.5 percent, according to the INSG. Now technically market is getting support at 690 and below same could see a test of 685.2 level, And resistance is now likely to be seen at 702.3, a move above could see prices testing 709.8.

Trading Ideas:

Nickel trading range for the day is 685.2-709.8.

Nickel dropped as nagging concerns about demand took the shine off lastweek's rally on the possibility of more mine closures.

Data showed that China's nickel ore imports in August climbed to a 13-month high of 4.3mt.

Indonesian mined nickel production slumped from 834,000 tonnes in 2013 to 177,000 tonnes in 2014 -INSG