Nickel settled down -0.45% at 1158.50 after testing day's high of 1171.70 extend its rally as the market is headed for a bigger deficit than previously forecast in the wake of Indonesia’s ore export ban. Lastweek Nickel started the week on the negative note amid speculation that Indonesia may relax its export ban if Joko Widodo wins elections in the country. Moreover, ample supplies on the global markets continued to weight on the metal. LME inventories stoof up almost 58% ytd last week.

However, the metal managed to limit its downswing that any election results in Indonesia would not change the country’s stance in relation to the ore exports policy. While World supply will be in a 3,000 ton shortfall by the end of the year, with the deficit widening to 134,900 tons next year. From dataside Eurozone industrial output declined 1.1% MoM in May, the biggest fall in 20 months. Meanwhile, ECB President Draghi reiterated at a quarterly policy meeting that the ECB will introduce QE if need be.

The International Monetary Fund agreed to this move, citing that it will help pull out the euro zone from the current economic downturn. Also Russian President Vladimir Putin reached an agreement with German Chancellor Angela Merkel in Brazil, calling for a new round of negotiation over the Ukraine crisis. Putin condemned the Ukrainian government forces over their attack in Russian territory, killing one. Now Investors are expected to be cautious on Tuesday before the release of US Federal Reserve Chair Janet Yellen’s testimony and China’s economic data. Technically market is under fresh selling and getting support at 1150.5 and below same could see a test of 1142.4 level, And resistance is now likely to be seen at 1169.2, a move above could see prices testing 1179.8.

Trading Ideas:

Nickel trading range for the day is 1142.4-1179.8.

Nickel prices ended with losses as pressure seen due to a series of negative economic reports

World supply will be in a 3,000 ton shortfall by the end of the year, with the deficit widening to 134,900 tons next year

Nickel traders are eyeing on speculation that Indonesia may relax its export ban if Joko Widodo wins elections.