Nickel Comes Back! How High Will Price Reach? - 19 July 2017

Commodity Intraday Tips
Gold marches higher as dollar collapses to 11-month lows.  
Gold prices extended overnight gains in North American trade on Tuesday, as the dollar tanked after a second attempt by Republicans to replace Obamacare failed, delivering a major policy blow to the Trump administration. Prices settled higher for a second-straight session on Monday on bets that lackluster U.S. data will keep the Federal Reserve cautious about the future pace of policy tightening. The dollar took a hit after Republican Senators Jerry Moran and Mike Lee announced their opposition to a revised Republican healthcare bill late on Monday. Investors were now more doubtful over the future of the Trump administration's planned tax reforms, given the difficulty the healthcare bill has faced in making progress. Fading expectations for another rate hike by the Federal Reserve this year further weighed on the greenback. Futures traders are pricing in less than a 40% chance of a rate hike by December, according to Investing.com’s Fed Rate Monitor Tool.  

Rio Tinto Copper Concentrate Output Dives Remarkably in H1 2017.  
Rio Tinto’s copper concentrate output declined 21% on a yearly basis to 208,900 tonnes (Cu content) in the first half of 2017 due mainly to the strike at Escondida copper mine, the company reported.Its copper concentrate output was 132,200 tonnes (Cu content) in the second quarter, a rise of 48% on a quarterly basis, according to the company’s Q2 earnings report. Copper concentrate output recovered in the second quarter after the strike at Escondida mine.  

Nickel Comes Back! How High Will Price Reach? SMM Reports.   
Nickel price has begun rallying from lows from Jul. 10, with LME nickel up from $8,800 to $9,700 per tonne. SMM attributes the gain to support from market fundamentals on top of positive economic data. Purchasing demand from domestic stainless steel mills is growing with higher profits. Decent profits encouraged mills, which previously ran at low rates, to step up production.  
   
Oil weaker in Asia as US stocks post surprise rise. 
Crude traded weaker in Asia on Wednesday as doubts over OPEC production cuts began to spread and the American Petroleum Instute reported an increase in U.S. supplies of crude. In Asia, China's refinery activity continued to indicate strong demand, with oil refineries increasing throughput in June. The bullish data from China, coincided with a report from the International Energy Agency released last week, suggesting that stronger consumption in the second half of the year could offset the glut in supply. U.S. crude oil inventories estimates from the American Petroleum Institute API) on Tuesday reportedly showed an increase of 1.6 million barrels for the week to July 14, against an expected drop of 3.740 million barrels. 

"Talk of capping Nigerian and Libyan output has been growing fast (within OPEC). But it is very unlikely that both countries will acquiesce to a cap so soon after restoring production," 


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