Nickel on MCX settled down -2.87% at 673.20 surrendering all gains in the previous sessions, but weak fundamentals should not be the only one reason behind the big decline. It is Indonesia’s decision to ease its export ban that serves the main culprit for the decline. Indonesia finally introduced new rules on January 12 that the country will allow exports of nickel ore under certain conditions. It was heard since September 2016 that the country proposed to revise its ban. In accordance with the new regulations, nickel miners should dedicate 30 percent of their smelter capacity to process low-grade ore, and the remaining low-grade ore will be allowed to be exported. Companies, that only have a series of required contracts and permits, and complete necessary procedures and checks, will be eligible for exports. Of those, companies should build smelters within five years and pass the government’s inspections on building schedule every six month. While Nickel prices may get support as fresh update shows that the global nickel market moved to a deficit of 1,600 tonnes in November from a surplus of 800 tonnes the previous month, the INSG said. Mine production in the Philippines was steady at 24,700 tonnes, the same as in October after nearly halving from 47,300 tonnes in September. During January to November last year, the global nickel market registered a deficit of 63,600 tonnes versus a surplus of 88,600 tonnes in the same period in 2015, the INSG added. Technically market is under fresh selling and getting support at 664.6 and below same could see a test of 656.1 level, And resistance is now likely to be seen at 689, a move above could see prices testing 704.9.

Trading Ideas:

Nickel trading range for the day is 656.1-704.9.

Nickel prices continuous to slid surrendering all gains after Indonesia’s decision to ease its export ban.

Indonesia finally introduced new rules that the country will allow exports of nickel ore under certain conditions.

Nickel prices may get support as fresh update shows that the global nickel market moved to a deficit of 1,600 tonnes in November