The slippage in Nickel has extended to a four month low as bargain buying is still absent from the markets. The news of Chinese restrictions on new home purchases has really thrashed the sentiments for metals in the country. The production of steel in China has been continuing to move upwards in last few years and the oversupply situation is not letting the demand blossom.
Nickel is consumed majorly by 300 series steel also known as austenitic steel. Situation in US is stabilizing somewhat but it is not so much strong that it will cater the needs of demand drawdown in Europe and China. Indian steel makers have suffered in the hands of imports from China, Korea and Japan over past so many months. The dumping is adversely affecting local producers.
LME Nickel three month forwards were trading at $ 16590 per tonne, down $ 34 per tonne from last night. These levels were last seen in October 2012. The prices are looking turning down towards $ 16000 per tonne in coming months.
MCX Nickel was last seen trading at Rs 909 per kg, down 0.13%. The prices are looking to derail towards Rs 898 per kg in the coming few sessions. Resistance for the contract is at Rs 915 per kg.
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