IGI Logo

Nickel prices steadied amid fears of Omicron variant

The London nickel gained while shanghai nickel prices eased last week amid resurging virus fear triggered demand concerns. Although, no fresh lockdown were declared by most nations higher freight charges may cause the supply shortage to continue. The major metal consumer China has witnessed stable demand, however, its imports continued to decrease while the output of nickel sulphate and stainless steel remained high. Large volumes of planned shipments arrivals of nickel briquette and nickel plate may cause China’s domestic supply pile up in upcoming months. Falling crude oil prices and steady rebound in US dollar also weighed the sentiments in nickel prices.

China releases 5-year green development plan for industrial sectors

China's industry ministry unveiled a five-year plan aimed at the green development of its industrial sectors, vowing to lower carbon emissions and pollutants and to promote emerging industries so as to meet a carbon peak commitment by 2030. The world's top greenhouse gas emitter is aiming to bring its carbon emissions to a peak by 2030 and become "carbon-neutral" by 2060. The Ministry of Industry and Information Technology (MIIT) reiterated the targets of cutting carbon dioxide emissions by 18%, and energy intensity by 13.5%, by 2025, according to the plan which covers the period between 2021 and 2025. It also said it will strictly control capacities in steel, cement, aluminium and other sectors.

Global nickel market deficit shrinks in Sept to 5,200 tonnes -INSG

The global nickel market deficit narrowed to 5,200 tonnes in September from a shortfall a month earlier of 14,600 tonnes, data from the International Nickel Study Group (INSG) showed. During the first nine months of the year, the nickel market saw a deficit of 174,900 tonnes compared with a surplus of 88,000 tonnes in the same period last year, INSG added.

Nickel Ore Inventories at Chinese Ports Fell 169,000 wmt

Nickel ore inventory at Chinese ports fell 169,000 wmt to 9.18 million wmt as of December 3. Total Nickel content stood at 72,100 mt. The total inventory at seven major ports stood at around 4.39 million wmt, a decline of 129,000 wmt from a week earlier. The arriving shipments of nickel ore have decreased recently. The nickel ore inventory is expected to slide further in the short term.

Warehouse inventory levels

Total warehouse inventories in LME registered warehouses decreased by 2.35 percent last week and totalled 112590 MT. The inventories in Shanghai warehouses decreased by 11.08 percent and totalled 4814 MT.

Outlook

Supply concerns and demand prospects continue to offer lower level support to prices. However, a strong US dollar and worries over the new fast spreading Covid variant, Omicron likely to limit major rallies.

On the technical side, MCX December contract prices having stiff support at $1470, which if remain undisturbed, expect continuation of upticks. A close below $1360 is a major reversal signal. In LME, a direct drop below $17400 would trigger liquidation pressure. Else, it may continue upticks in immediate run.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at www.geojit.com

SEBI Registration number is INH200000345

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer