Nickel yesterday traded with the negative node and settled -1.42% down at 972.40 as the euro zone's economic woes accelerated last month and China's slowdown looked likely to extend to a seventh quarter, surveys on Wednesday showed, while the United States proved the bright spot with better-than-expected news on services and jobs. A global nickel surplus may expand for a third year to the highest level since 2008 as supply from new mining projects outweighs China’s demand growth, Japan’s top producer said. Supply will likely exceed demand by 60,000 metric tons in 2013, said Toru Higo. Supply outstripped demand by 40,000 tons this year and 22,000 tons in 2011, he said. World stainless-steel output may gain 4.7 percent to 35.7 million tons in 2013, Higo said. Output by China, the biggest producer, is expected to rise 9.7 percent to 15.8 million tons with the new infrastructure projects, he said. In September, China’s government approved plans for 2,018 kilometers of roads, as well as sewage plants, port and warehouse projects and subways. In yesterday's trading session nickel has touched the low of 970.3 after opening at 985, and finally settled at 972.4. For today's session market is looking to take support at 966.8, a break below could see a test of 961.2 and where as resistance is now likely to be seen at 981.5, a move above could see prices testing 990.6.

Trading Ideas:

Nickel trading range for the day is 961.2-991.

Nickel dropped as the euro zone's economic woes accelerated last month

Markets have been anticipating for past month that Spanish government would ask for a full-scale sovereign bailout.

The Nickel market was in surplus during January to July 2012 with production exceeding apparent demand by 50000 tonnes.