Nickel on MCX settled down -1.08% at 659.8 as there were concerns that as Indonesia relaxed its export ban the market would be flooded with new supplies, depressing nickel prices. BHP Billiton’s Kwinana nickel refinery hit record production levels in the December quarter as the global mining giant’s unloved WA nickel assets booked a big lift in exports. BHP said yesterday its Nickel West assets produced 22,100 tonnes of nickel in the December quarter, 18 per cent more than the September period and a 45 per cent lift on a year ago. About 10,000 tonnes of nickel have arrived into warehouses this week – this may have been because of Chinese de-stocking ahead of the Chinese New Year, Sucden said in a recent note. Prices would probably suffer under such de-stocking. Nickel stocks were up 1,848 tonnes to 382,002 tonnes and cancelled warrants fell 2,946 tonnes to 116,028 tonnes. New home sales in the U. S. saw a sharp pullback in the month of December, according to a report released by the Commerce Department. The Commerce Department said new home sales tumbled by 10.4 percent to an annual rate of 536,000 in December after jumping by 4.7 percent to a revised rate of 598,000 in November. With the much bigger than expected decrease, new home sales fell to their lowest level since hitting 525,000 last February. Data showed Japan posted its first trade surplus in six years in 2016. Technically market is under fresh selling as market has witnessed gain in open interest by 2.67% to settled at 22687 while prices down -7.2 rupees, now Nickel is getting support at 649.2 and below same could see a test of 638.5 level, And resistance is now likely to be seen at 669.6, a move above could see prices testing 679.3.

Trading Ideas

# Nickel trading range for the day is 638.5-679.3.

# Nickel dropped as there were concerns that as Indonesia relaxed its export ban the market would be flooded with new supplies.

# BHP Billiton’s Kwinana nickel refinery hit record production levels in the December quarter.

# About 10,000 tonnes of nickel have arrived into warehouses this week – this may have been because of Chinese de-stocking ahead of the Chinese New Year