Nickel settled down -0.58% at 674.3 as pressure seen on prices due to the glut in nickel market. Although the US dollar index fell back, the growing supply and anemic demand will push nickel price lower. In Chinese market, the Beijing parade on September 3 will have limited impact on nickel supply, so spot nickel price in China is also expected to trend down to 79,000-81,000 yuan per tonne. China's refined nickel imports more than doubled and ferronickel imports trebled from a year ago, but the news was not enough to offset concerns over poor demand from the Chinese stainless steel sector. The devaluation of the Indonesia rupee is (also) pushing down production costs for nickel ore. A plunge in China's factory activity data fuelled fresh concerns about the world's no. 2 economy. The preliminary Caixin China Manufacturing Purchasing Managers' Index fell to 47.1 in August, the lowest level in more than six years, from a final reading of 47.8 in July. Eurozone private sector growth improved in August underpinned by German activity, while the expansion in France eased to a four-month low, signaling the widening divergence between two largest euro area economies. The flash Purchasing Managers' Index ticked higher to 54.1 from July's final reading of 53.9 and remained at an expansionary level for the twenty-sixth successive month, preliminary data from Markit Economics showed. Germany's private sector grew at the fastest pace in four months in August, flash survey data from Markit revealed. The reading reached a 4-month high in August. Technically now Nickel is getting support at 662.3 and below same could see a test of 650.4 level, And resistance is now likely to be seen at 684.8, a move above could see prices testing 695.4.

Trading Ideas:

Nickel trading range for the day is 650.4-695.4.

Nickel prices ended with losses as pressure seen on prices due to the glut in nickel market.

Although the US dollar index fell back, the growing supply and anemic demand will push nickel price lower.

China's refined nickel imports more than doubled and ferronickel imports trebled from a year ago, but the news was not enough to offset concerns over poor demand.