Commodity Trading Tips for Nickel by KediaCommodity

Ajay Kumar Kedia 1 September 2014

Nickel Nickel settled up 0.41% at 1140.3 as support seen after release of US data despite of China's investors remained cautious now that prices lack support from demand. Nickel prices rose so suddenly, when the investor's hoped a sudden decline. The surplus in the global refined nickel market has narrowed in 2014, when compared with the previous year. China has been stocking their supplies with rapture quality Indonesian product. Nickel inventory on the London Metal Exchange, has risen to 63,000 tons from 324,714 tons, that is about 23% increase, since the beginning of this year. Apparently more than half of this supply is coming from China. First time seven months the production has been doubled to 159,000 metric tons, along with that, scrap prices are also up. The ban ore Nickel ore exports by Indonesian administration have led to a strong rally in Nickel prices during the year. The prices have surged nearly 35% year-to-date. The ongoing Indonesian ban may deplete the high grade ore stocks in Chinese warehouses. The report states that the rise in LME Nickel inventories is the result of shift in stocks from Australian stockpile and Chinese bonded warehouses. The move from Australian stockpiles was witnessed since early-2013. However, the inspections at Chinese Qingdao port have resulted in movement of stockpiles to LME warehouses since Q2 this year. Technically market is under fresh buying as market has witnessed gain in open interest by 10.06% to settled at 3917 while prices up 4.7 rupee, now Nickel is getting support at 1128.9 and below same could see a test of 1117.4 level, And resistance is now likely to be seen at 1147.1, a move above could see prices testing 1153.8.