India Nickel Scrap prices decline in line with MCX Nickel

INDIA October 20 2015 4:50 PM
MUMBAI (Scrap Register): Indian nickel scrap prices declined on Scrap Register Price Index as on Monday in line with nickel futures prices at India's Multi Commodity Exchange due to disappointing GDP growth in China, a large number of shorts rushed to the market.

According to the Scrap Register Price Index, the major nickel scrap commodities like nickel plate(4x24), nickel plate(9x9) and Russian(4x4) traded down on Monday.

In futures, the most active October nickel contract on Multi Commodity Exchange settled down by 1.6% to Rs. 673.20 per kilogram on Monday from previous close of Rs. 684.60 per kilogram. The MXC nickel prices touched an intra-day high of Rs. 684 per kilogram and an intra-day low of Rs. 670 per kilogram during Monday. The open interest of the contract stood at 27093 lots.

However downside seen limited some miners to start curbing production, as the market struggles to cope with spot prices dipping below production costs.

Nickel prices have fallen nearly 30 percent this year, weighed by ample stocks and subdued stainless steel demand. Low prices and output cuts in other metals markets have raised expectations of a similar move by nickel miners.