Nickel on MCX settled up 0.62% at 744.3 as the market tracked the latest plans by the Philippines to close mines on environmental grounds. Nickel extended recent gains, finishing up 0.9 percent at $11,150, the highest since Dec. 19. The Philippines' environment minister said on Monday that she stands by her decision to shut more than half the country's operating mines ahead of a meeting to review the move. Philippine President Rodrigo Duterte said he would review a minister's order to close more than half the country's mines for environmental violations, following an outcry from affected producers. China's steel mills and traders were scrambling to find alternative supplies of coking coal for steel making after Beijing slapped a surprise ban on coal imports from its isolated northern neighbour. Nickel ore inventories at seven major Chinese ports were down 50,000 mt during the period. The Philippines this week ordered the cancellation of 75 mineral production-sharing agreements as developing them would threaten water supplies. That came after the closure or suspension of 28 of the country's 41 mines. Meanwhile Indonesia eased a three-year ban on nickel ore exports in January. However, market players say the rules accompanying the relaxation on using local smelter capacity to process low-grade ore is a hurdle that some firms may not be able to jump. The focus will be on fixed-asset investment, industrial production, surveys of purchasing managers in manufacturing and property market indicators in China. Technically market is under short covering as market has witnessed drop in open interest by -1.89% to settled at 14763 while prices up 4.6 rupees, now Nickel is getting support at 738.6 and below same could see a test of 732.8 level, And resistance is now likely to be seen at 747.6, a move above could see prices testing 750.8.

Trading Ideas

# Nickel trading range for the day is 732.8-750.8.

# Nickel gained as the market tracked the latest plans by the Philippines to close mines on environmental grounds.

# The Philippines' environment minister said that she stands by her decision to shut more than half the country's operating mines

# Philippine President Rodrigo Duterte said he would review a minister's order to close more than half the country's mines for environmental violations.