Nickel on MCX settled down -0.9% at 690.9 on news that production has now returned to normal at New Caledonia nickel producer Societe Le Nickel (SLN) which was earlier in the week hit by a series of explosions disturbing its production temporarily. Production loss from the accident, however, is not available now, the company’s spokesman said. SLN, a subsidiary of French conglomerate Eramet, has forecast production of around 53,000 tonnes of nickel this year, or 5 percent of total global output. In other news, The Philippines’ Department of Environment and Natural Resources (DENR) is expected to announce its final decision of months-long auditing on metal mines. And latest news report that the Department will start a nationwide review on non-metal mines. Global nickel market ended in deficit of 75,100 tonnes in January-August 2016 with apparent demand exceeding production. The calculated full year surplus had stood at 46.2 kt during the whole year 2015, according to WBMS. The statistics indicate that that reported stockpiles maintained by LME were 72.2 kt lower at the end of August this year from the closing levels of 2015. World Nickel mine production was 1,355.8 kt in January-August 2016, lower by 75.1 kt when compared with the corresponding period during previous year. The ban on exports by Indonesian administration has led to reduced mine output from the country. In addition, the local mine production from the country has continued to remain extremely weak ever since the beginning of 2014. Technically market is under fresh selling as market has witnessed gain in open interest by 9.68% to settled at 13524, now Nickel is getting support at 688.3 and below same could see a test of 685.7 level, And resistance is now likely to be seen at 695.5, a move above could see prices testing 700.1.

Trading Ideas:

Nickel trading range for the day is 685.7-700.1.

Nickel dropped on news that production has now returned to normal at New Caledonia nickel producer Societe Le Nickel.

Global nickel market ended in deficit of 75,100 tonnes in January-August 2016 with apparent demand exceeding production.

Global nickel market ended in deficit of 75,100 tonnes in January-August 2016 with apparent demand exceeding production.