Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 8 August 2013

Nickel Nickel yesterday settled up 1.45% at 859.50 recover as rumours that Indonesia can brings in a planned ban on unprocessed ore exports, said executives from Russia's Norilsk Nickel, the world's largest producer of the metal. Indonesia is the world's top exporter of nickel laterite ore, which is mostly shipped to China to be used as a cheap substitute for nickel in stainless steel. A strictly enforced ban on exports of ore would support demand for refined nickel, said Pavel Fedorov, deputy chief executive of Norilsk Nickel, who met government and industry officials in Jakarta to assess how the policy would be implemented. Three-month nickel on the London Metal Exchange
(LME) sunk to four-year lows this month, trading around $13,900 a tonne on Thursday, from above $21,000 a tonne in early 2012, as China's growth slows and stainless steel producers turn to cheaper exports from Indonesia and the Philippines. In Shanghai, the market was awaiting economic news to be released on Thursday, and transactions did not improve and were mainly made among traders. Also Jinchuan nickel lowered prices to RMB 98,000/mt, with traded prices around RMB 97,600/mt, down RMB 300/mt, and Russian nickel prices were around RMB 96,600/mt. Downstream buying interest was extremely low. Technically market is under fresh buying as market has witnessed gain in open interest by 9.89% to settled at 6945 while prices up 12.3 rupee, now Nickel is getting support at 844.80 and below same could see a test of 830.10 level, And resistance is now likely to be seen at 867.03, a move above could see prices testing 875.10.