Commodity Trading Tips for Nickel by Kedia Commodity

Nickel on MCX settled up 3.36% at 723.7 as LME Nickel saw the day's biggest gains, closing up 2.6 percent at $10,860 a tonne as high as the market tracked the latest plans by the Philippines to close mines on environmental grounds. Nickel's year to date 11.3 percent increase in price has been spurred by substantial mine closures in the Philippines and the expectation of increased demand from the U. S. and China. Chinese nickel demand is expected to increase in 2017 due to a rise in steel manufacturers moving into higher value- added stainless steel products. The Philippines' environment minister said President Rodrigo Duterte had backed her decision to ban mining in watershed areas at a meeting, winning his support once more for her crackdown on the sector. Nickel supply continued to fall in 2016 with further shutdowns and lower nickel unit exports (in ore) from the Philippines all driving a fall in projected nickel output to approximately 1.95 million tonnes of nickel, down 2% versus 2015. Consequently the market entered its first material deficit since 2010 enabling global inventories to fall by around 100,000 tonnes. Whilst inventories remain elevated, the outlook is for continued deficits and further draws in primary nickel inventories as demand remains strong. Supply increases relate to Indonesia exporting more nickel units in nickel pig iron, with production elsewhere continuing to flat-line or even fall. Glencore estimate global stainless production in 2016 at over 45 million tonnes, up over 7% on the prior year, including over 24 million tonnes from China. Technically now Nickel is getting support at 712.6 and below same could see a test of 701.5 level, And resistance is now likely to be seen at 729.9, a move above could see prices testing 736.1.

Trading Ideas:

# Nickel trading range for the day is 701.5-736.1.

# Nickel prices gained as LME Nickel closing up 2.6 percent as the market tracked the latest plans by the Philippines to close mines on environmental grounds.

# Chinese nickel demand is expected to increase in 2017 due to a rise in steel manufacturers moving into higher value-added stainless steel products.

# The Philippines' environment minister said President Rodrigo Duterte had backed her decision to ban mining in watershed areas at a meeting