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Nickel rallied to a four month highs on stronger demand prospects despite China’s efforts to crack down soaring commodity prices. Stronger demand for steel continue to bolster the steel component prices.

Global Economy

* Major global equity gauges displayed moderate performance in the last week, while Japan's NIKKEI shed 2.93 percent.

* Fed minutes from June policy session showed that officials kept a rather patient stance on monetary tightening.

* China's producer prices rose by 8.8 percent YoY in June 2021, posting the sixth straight month of increase in factory gate prices.

* China's consumer inflation rate unexpectedly fell to 1.1 percent in June 2021.

Currencies

* US dollar settled few ticks lower last week at 92.13 marks against the basket of rivals.

* Euro inched up and closed slightly against dollar last week. Chinese Yuan eased 0.08 percent, while Japanese Yen gained 0.82 percent against dollar.

* Indian Rupee ticked up by 0.04 percent and settled at 74.485 marks against dollar.

Nickel

* LME Nickel futures gained 2.21 percent last week while SHFE Nickel futures gained 3.18 percent.

* In MCX, Nickel near month futures prices gained 2.34 percent.

* China's crude steel production grew 2 percent in May to a record high of 99.5 metric tonne.

* LME Nickel cash over three month futures premium moved to backwardation at USD22.5 per MT.

Outlook

Robust demand from the stainless-steel industries and the electric vehicle segment continue to offer support to prices. China’s considerable appetite for commodities and concerns over supply from the top producer Indonesia, may also generate investment excitement in the commodity in near future.

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