Nickel settled down -4.38% at 1149.60 on easing supply concerns after a Filipino congressman said that any mineral ore export ban in the Philippines may take seven years to be implemented. The Philippines accounts for nearly all of China's nickel ore and concentrate imports after Indonesia enacted a mineral ore export ban earlier this year. Pressure also seen amid reports that a potential ore-exports ban by the Philippines may be years away.

A Philippine Congressman who supports a proposal to ban the shipment of unrefined ore told that the legislation could take two years to be enacted and may give mining companies a five-year grace period. Nickel futures had surged 7.4 per cent in less than a week on news of the proposed ban, which was similar to a move Indonesia made this year that has curbed global nickel supplies. China's trade surplus hit a record USD 49.83 billion in August, up
77.8% YoY, but imports fell 2.4%, indicating that the Chinese economy lacked impetus to grow amid sluggish domestic demand.

Meanwhile, the Chinese Premier Li Keqiang said late on Tuesday that the government will not unveil aggressive stimulus measures and will largely maintain a prudent monetary policy. LME nickel prices opened at USD 19,852/mt overnight, with the high end of the price range USD 19,929/mt, and finding support at USD 18,827/mt. LME nickel prices closed at USD 18,865/mt, down USD 1,070/mt from the previous trading day. Technically market is under long liquidation as market has witnessed drop in open interest by -31.65% to settled at 6860 while prices down -52.7 rupee, now Nickel is getting support at 1131.2 and below same could see a test of 1112.8 level, And resistance is now likely to be seen at 1184, a move above could see prices testing 1218.4.

Trading Ideas:

Nickel trading range for the day is 1112.8-1218.4.

Nickel dropped on easing supply concerns after a Filipino congressman said that any mineral ore export ban in the Philippines may take seven years to be implemented

Investors had feared that a disruption to exports from Philippines would further restrict market access to stainless steel ingredient.

Pressure also seen amid reports that a potential ore-exports ban by the Philippines may be years away.