Nickel settled down -0.36% at 895 as pressure seen after data released from China that GDP grew 7.7% in Q4, a slowdown from the 7.8% growth in Q3. Nickel led gains last week as Indonesia finally imposed a ban on ore exports. Indonesia accounts for about 18-20% of global nickel supplies and the ban that came at a time when the overall global economy is improving is likely to remain a dominating positive factor in the weeks to come. However, availability of alternative suppliers such as neighboring Philippines may allay the effect of changes in Indonesian regulation. China’s GDP for Q4 2013 grew 7.6% YoY, slower than Q3’s pace but exceeding the 7.6% forecast, allowing the country to achieve its 7.5% full-year target. China’s GDP growth hit 7.7% through 2013. Consumption contributed 50% of GDP and investment 54.4%, and contribution from exports was a negative 4.4%. China’s consumer goods sales grew by 13.6% in December 2013 and increased 13.1% for all of 2013. Fixed asset investment in 2013 totaled RMB 4.365 billion (excluding rural household), growing at a nominal rate of 19.6%, and with the real growth at 19.2%. The growth rate was 0.3 percentage point lower than just in the first eleven months and was 1.1 percentage points off 2012’s level. Technically market is under long liquidation as market has witnessed drop in open interest by -9.22% to settled at 5889 while prices down -3.2 rupee, now Nickel is getting support at 885.7 and below same could see a test of 876.3 level, And resistance is now likely to be seen at 900.6, a move above could see prices testing 906.1.

Trading Ideas:

Nickel trading range for the day is 876.3-906.1.

Nickel dropped as traders locked in profits after a ban on Indonesian ore exports that came into force at the weekend triggered a rally

Indonesia’s nickel production will decline by 84 percent from last year to 9 million tons this year.

Technically market is under long liquidation as market has witnessed drop in open interest by -9.22% to settled at 5889 while prices down -3.2 rupee