Nickel yesterday traded with the negative node and settled -3.07% down at 990.1 due to economic slowdown worries across the globe. The slowdown in demand prospects of Steel markets after the recent crisis will dent demand for Nickel as well. Jinchuan Group cut ex-works nickel prices by RMB 7,000/mt to RMB 174,000/mt on August 5th. Production costs of high grade NPI increased due to nickel ore price hike along with LME nickel price increase. Supported by high production costs, high grade NPI producers were reluctant to move goods at low prices. In yesterday's trading session nickel has touched the low of 980.1 after opening at 1023.3, and finally settled at 990.1. For today's session market is looking to take support at 972.4, a break below could see a test of 954.6 and where as resistance is now likely to be seen at 1015.6, a move above could see prices testing 1041.

Trading Ideas:

Nickel trading range is 954.6-1041.

Nickel prices slumped due to economic slowdown worries across the globe

Jinchuan Group cut ex-works nickel prices by RMB 7,000/mt to RMB 174,000/mt on August 5th.

Production costs of high grade NPI increased due to nickel ore price hike