Nickel settled up 0.46% at 897.3 amid mounting concern that supplies will tighten after a ban on ore exports from Indonesia. Before the shortfall, the global production surplus will drop to 35,000 metric tons this year from 150,000 tons in 2013 as supplies of nickel pig iron decline because of the Indonesian ban, Macquarie said this week in a report. This month, the price has climbed 5.7 percent, leading the six main metals traded on the LME. The number of US initial jobless claims last week was 326,000, its lowest in six weeks, pointing to recovering US job market. US December CPI grew 1.5% YoY, and 0.3% MoM. US officially passed the USD 1 trillion spending bill in 2014 to avert the US government from shutting down before September 30.  LME nickel prices opened at USD 14,520/mt on Thursday, with the high end of the price range USD 14,725/mt, and finding support at USD 14,510/mt. Finally, LME nickel prices closed at USD 14,615/mt, up USD 96/mt from the previous trading day. Inventories fell by 654 mt, to 261,246 mt. December CPI growth advanced to 1.5% from 1.2%, matching estimates, but was still below the Fed’s 2.0% target. The Philly Fed manufacturing index for January was revised upward to 9.4. That, combined with the bright Empire State manufacturing index, allowed investors to be more optimistic on the ISM manufacturing index. Technically market is under short covering as market has witnessed drop in open interest by -2.14% to settled at 6307 while prices up 4.1 rupee, now Nickel is getting support at 888.2 and below same could see a test of 879.2 level, And resistance is now likely to be seen at 905, a move above could see prices testing 912.8.

Trading Ideas:

Nickel trading range for the day is 879.2-912.8.

Nickel ended with gains amid mounting concern that supplies will tighten after a ban on ore exports from Indonesia

U.S. jobless claims fell, suggesting a sharp step-down in job growth showed in the December nonfarm payrolls report was likely to be temporary.

Investors awaiting data from China due for release next week, including GDP growth, industrial value-added, and manufacturing index.