MUMBAI: Nickel settled down -1.96% at 1114 retreated on Thursday to reach its lowest since mid-May as investors closed positions following a price gain of almost 40 percent for the year so far. Still, the long-term bull trend in nickel remained intact. According to INSG, the surplus in global nickel market dropped significantly during the month of March this year.
The global nickel market surplus totaled 3,600 tons in March this year. This is 52.6% down when compared with the surplus data during March last year. The global nickel market surplus during March 2013 was 7,600 tons. The nickel surplus in March dropped when compared with the previous month. The global nickel surplus fell by 25% month-onmonth during March. The production of Nickel during the month of February this year exceeded the monthly demand by 4,800 tons. INSG notes that that the global nickel surplus during the three-month period from January to March this year dropped significantly over the previous year. The surplus narrowed to almost one-third during the initial three-month period of the year.
The global surplus of nickel dropped from 38,900 tons during January to March 2013 to 13,400 tons during the corresponding three-month period this year. Investors should pay close attention to US personal income and spending for April, the University of Michigan’s final consumer sentiment index for May, as well as Chicago’s PMI for May on Friday. These economic reports are mostly expected to be disappointing, while will exert further downward pressure on nickel prices. Technically market is under long liquidation and getting support at 1103.9 and below same could see a test of 1093.9 level, and resistance is now likely to be seen at 1124.5, a move above could see prices testing 1135.1.