Nickel yesterday traded with the positive node and settled 0.26% up at 917.8 after data showed HSBC's China preliminary PMI was 51.7, far better than 50.4 expected. Growth in global production of primary nickel this year is set to outpace consumption growth, increasing the surplus in the global market, the Lisbon-based International Nickel Study Group (INSG) forecast. Global primary nickel output is expected to rise 5.7 percent in 2013 to 1.849 million tonnes, driven by output growth in Asia. Global nickel consumption is forecast to rise 5.6 percent to 1.7552 million tonnes. Another year of supply surplus could put pressure on nickel prices, which have fallen for two straight years before 2013. Cyprus received an ultimatum from the European Central Bank to raise enough money before the bank cut off its emergency support for the country next Monday, which renewed worries about situation in Cyprus. Besides, weak economic data from the euro zone intensified market concern over the European debt crisis. The eurozone initial composite PMI for March was 46.5, the lowest in four months, and the initial manufacturing PMI was 46.6, the lowest in three months. Economic data from two major economies Germany and France were both deteriorating. Germany's initial composite PMI for March was 51.0, the lowest in three month, and the initial manufacturing PMI was 48.9, below 50. France's initial composite PMI for March was 42.1, the lowest since March 2009, and the initial manufacturing PMI was 43.9. In yesterday's trading session nickel has touched the low of 911.6 after opening at 916.7, and finally settled at 917.8. For today's session market is looking to take support at 913.1, a break below could see a test of 908.4 and where as resistance is now likely to be seen at 921, a move above could see prices testing 924.2.
Nickel trading range for the day is 908.4-924.
Nickel gains after data showed HSBC's China preliminary PMI was 51.7, far better than 50.4 expected
Growth in global production of primary nickel this year is set to outpace consumption growth increasing surplus in global market.
Global nickel consumption is forecast to rise 5.6 percent to 1.7552 million tonnes.
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