Nickel on MCX settled down -0.82% at 764.40, prices were driven to their lowest in 11 months lastweek by worries about a supply surplus in 2019 and weaker demand from China, the largest consumer of the metal. Also other base metal prices also fell sharply on concerns that U.S.-China trade talks next week could fail, leading to weaker economic growth. Adding to the bearish mood for nickel was news that German chemicals giant BASF is planning to use less of the metal in its electric car batteries. Electric vehicles have been touted as a major new source of demand. Benchmark nickel on the London Metal Exchange did not trade in official rings but was last bid down 2 percent at $10,750 a tonne, having earlier touched its lowest since Dec. 7 last year. It was down 5.4 percent this week, its biggest weekly fall since July. The most active nickel contract on the Shanghai Futures Exchange settled down 2.2 percent on Friday and down 5.8 percent this week. “I heard some Chinese investors are shooting (down) the nickel price. They think nickel production in Indonesia will bring the market into surplus next year, and demand for stainless will be bad,” CRU said, adding that they expected the nickel price to fall to about $8,000.
* CHINA TRADE: U.S.-China trade talks should be equal and mutually beneficial, Chinese Vice Commerce Minister Wang Shouwen said, adding he hoped the two countries could find ways to manage their differences through dialogue. U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold talks during the G20 summit next week.
* Norilsk Nickel plans to expand nickel production to meet growing EV demand : Russian copper and nickel producer Norilsk Nickel unveiled plans to expand its nickel and copper production by 15% over seven years in a presentation to investors in London lastweek.
* Nickel market records deficit in January to September 2018 – WBMS – The Nickel market was in deficit during January to September 2018 with apparent demand exceeding production by 33 kilo tonne. In the whole of 2017 the calculated deficit was 41.3 kilo tonne. Reported stocks held in the LME at the end of September 2018 were 138 kilo tonne lower than at the end of the previous year. Refined production in January to September 2018 totaled 1626 kt and demand was 1659 kilo tonne.
* Mine production :
Mine production during Jan to Sept was 1686 kilo tonne, 181 kilo tonne above the comparable 2017 total. Chinese trade data has just become available following a six-month delay for technical reasons. Chinese smelter/refinery output increased by 69 kilo tonne compared with 2017 and apparent demand was 73 kilo tonne higher than in the previous year. World apparent demand was 134 kilo tonne higher than the previous year. No allowance is made in the consumption calculation for unreported stock changes. In September 2018, nickel smelter/refinery production was 185.7 kilo tonne and consumption was 195.4 kilo tonne.
* What is Harmonic Pattern BAT :
The Harmonic Bat is a variation to the Gartley pattern which was developed by Scott Carney. It is considered to be one of the more accurate patterns exhibiting a higher success rate than any other harmonic patterns. The bat pattern might look similar to a Gartley 222 Butterfly pattern but differs only minutely in terms of the Fibonacci ratios between the swing/pivot points.
Now Nickel is getting support at 762.00 and below same could see a test of 704.00 level, and resistance is now likely to be seen at 838.00, a move above could see prices testing 890.00.
TECHNICAL POSITIONAL CALL : NICKEL Positional Free Call Nickel Positional Free Call – BUY Mcx NICKEL DEC at CMP 768.50 Add more if price 766 – 751 with SL 730 for Target 815 – 835 – 860