MCX Nickel under fresh selling; Support seen at 808.9

Nickel market is under fresh selling as market has witnessed gain in open interest by 0.37% to settled at 16873 while prices down 7.4 rupees.

Now MCX Nickel is getting support at 808.9 and below same could see a test of 798.7 level, And resistance is now likely to be seen at 833.8, a move above could see prices testing 848.5.

Nickel on MCX settled down 0.9% at 819 pressured by worries of slowing Chinese demand for steel. Increasing nickel pig iron production and rising Shanghai nickel inventory also pointed to further nickel weakness in the short term.

Chinese Premier Li Keqiang said Beijing will further open up its economy in the face of rising protectionism, as he headed for meetings with Asia-Pacific leaders in Singapore that are expected to focus on trade tensions.

Lower costs from sea freight reduced the weekly offers of high- and medium-grade nickel ore. North Chinese plants received offers for high-grade nickel ore with 1.8% Ni at $56/wmt, and offers for medium-grade ore with 1.65% Ni at $46/wmt, both down some $1/wmt from a week ago.

Purchasing enthusiasm cooled across domestic nickel pig iron (NPI) plants as prices of futures fell. Some mills set their target prices at $54/wmt for high-grade nickel ore with 1.8% Ni. Currently, no transaction was heard at that price. In domestic NPI market, purchasing prices of high-grade NPI stood at 1,020 yuan/mtu ex-works with tax included this week.

The transaction was made by a trader, with purchasing volume of 2,000 mt. Some 13,200 mt of nickel was produced across China in October, standing 4.62% higher from a year ago. However, overall output in January-October was 8.63% lower on the year, at 119,200 mt. In October, China’s nickel output surged 21.03% from September as two producers recovered from maintenance.

Trading Ideas:
–Nickel trading range for the day is 798.7-848.5.
–Nickel prices dropped pressured by worries of slowing Chinese demand for steel.
–Increasing nickel pig iron production and rising Shanghai nickel inventory also pointed to further nickel weakness in the short term.
–In October, China’s nickel output surged 21.03% from September as two producers recovered from maintenance.

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