Nickel on MCX settled down -1.52% at 628.40 tracking weakness in LME nickel ended the day down 1.1 percent at $9,735 a tonne as a tentative recovery in broader financial markets lost steam, with geopolitical tensions and fading hopes of a boost to U.S. demand putting pressure on prices. Meanwhile sentiments still remain robust after the news update that the two biggest nickel miners in the Philippines, Nickel Asia Corp and Global Ferronickel Holdings Inc, said prices for the metal would be robust this year due to growing demand from China. The Philippines is the world's top supplier of nickel ore, used to help make stainless steel, with China its No.1 market. Benchmark nickel prices stood around $9750 a tonne in yesterday session, but forecasts from the likes of the World Bank show they could average around $11,000 in 2017. That would compare to around $9,500 last year. The nation's largest ore producer, Nickel Asia, said in its own statement that prices had held up "very well" in the first quarter and would likely remain firm due to low inventory levels in China. Parts of the Philippines' metals sector have been roiled as its resources minister, a committed environmentalist, this year ordered the closure of more than half the nation's mines to protect watersheds. One of Nickel Asia's four mines is among the 22 ordered closed and the company has said it would pursue all legal remedies to overturn the order. Global Ferronickel is not among companies facing mine closures or suspensions. Now technically market is getting support at 624.6 and below same could see a test of 620.8 level, And resistance is now likely to be seen at 635.1, a move above could see prices testing 641.8.
Nickel trading range for the day is 620.8-641.8.
Nickel dropped as a tentative recovery in broader financial markets lost steam, with geopolitical tensions and fading hopes of a boost to U.S. demand putting pressure on prices.
Miners in the world's top producer of the raw metal were allowed to remove previously mined ore that could pose environmental hazards.
Two biggest nickel miners in the Philippines said prices for the metal would be robust this year due to growing demand from China.