Commodity Trading Tips for Nickel by Kedia Commodity

Ajay Kumar Kedia 27 August 2013

Nickel Nickel settled up 0.36% at 931.80 giving up all its morning gains after a surprisingly weak report on U. S. durable goods boosted hopes that the Federal Reserve will maintain its bond-buying to prolong economic stimulus. In China's domestic spot markets, the average price of nickel from 16-22 August was RMB 102,480/mt. While Jinchuan Group cut ex-works prices last week by RMB 1,200/mt to RMB 102,300/mt. Traded prices for Jinchuan nickel were between RMB 102,200-103,800/mt, and between RMB 101,000-102,600/mt for Russian nickel, a difference of RMB 1,200-1,300/mt. As LME nickel slid in early week trading, domestic traders chose to move goods at low prices due to market pessimism. Investors turned to electronic trading in Wuxi after hedging opportunities emerged on Wednesday. Traders raised prices after LME nickel moved higher, but a RMB 700/mt price cut by Jinchuan Group forced traders to reduce prices, although downstream producers purchased cautiously. The price adjustments by Jinchuan Group were finally accepted by traders since they believed the price change was reflective of market conditions. Futures were also higher amid receding concerns over a deeper-than-expected slowdown in China. China's state statistics bureau said earlier that the nation's economy is on course to meet the government's annual growth target of 7.5%, with "signs of growth stabilization" becoming "more obvious." China is the world's largest consumer, accounting for almost 40% of world consumption last year and manufacturing numbers are often used as indicators for future demand growth. Technically market is getting support at 922.2 and below same could see a test of 912.6 level, And resistance is now likely to be seen at 942.2, a move above could see prices testing 952.6.