nickel intraday

Nickel advances to a three-week high
13 June 2008 10:30:38



Nickel advanced for a second day to a three-week high and is heading for the biggest weekly gain since September, after BHP Billiton Ltd. said it will shut down facilities that produce about 2 percent of world supply.

The earlier-than-planned rebuild of the Kalgoorlie smelter furnace will reduce nickel sales by 28,000 metric tons, and the Kwinana refinery will be closed during the overhaul, the Melbourne-based company said yesterday. BHP is the world's third-largest producer of the metal used in stainless steel.

Nickel has climbed 15 percent since falling close to a two-year low on May 30, while stockpiles of the metal have fallen 10 percent since April 22 when they reached the highest since 1999, according to LME data.

Demand growth for stainless steel from China, the world's largest nickel consumer, is slowing from a year ago as projects for the summer's Olympic Games are completed and the leasing and sale of offices in major cities slows, Jinchuan Group Ltd. Said June 3.

Global demand for stainless steel will rise 12 percent this year to 1.56 million tons, after zero growth in 2007, while supply will increase 9 percent to 1.55 million tons, Merrill Lynch & Co said. May 30.

LME Inventory decreased by 18 MT to 47220MT.

MCX Nickel June - Technical Outlook:

The daily stochastics have crossed over up which is a bullish indication. The prices closed above short term and medium term EMA, which supports bears. MACD is heading upwards in positive region, showing increase in bullish momentum.

Technical have turned neutral to bullish and market is expected to remain positive above 1076 level. if sustain above this level can see a rally towards 1095 and 1132 , If market sustains below 1039 can see a further fall towards 1020 and 983

Recommendations: MCX Nickel June: Buy at 1030 Target 1070 and 1095 SL 1015

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