Stock Trading Tips- Nickel drops to 11-month low as rebar steel prices tumble
Nickel fell to its lowest in around 11 months on both London and Shanghai exchanges as rebar steel prices tumbled due to concerns over slowing demand in top consumer China.
Three-month nickel, used mainly in steelmaking, fell 0.4 percent to $11,420 a tonne on the London Metal Exchange by 0335 GMT, after earlier hitting its lowest since mid-December at $11,360 a tonne. The most-traded Shanghai nickel contract lost 2.3 percent to 94,760 yuan ($13,623.80) a tonne.
“Stainless steel prices dropped a lot in the last two weeks because production is too high,” said Peter Peng of CRU Group. “I don't think it's just a nickel issue, it's everything. Investors are quite bearish about the futures market,” he said.
A strong US dollar and worries over economic growth in China as well as the US-China trade tensions have been weighing on industrial metals.
Rebar steel prices
Shanghai rebar steel prices tumbled nearly 4 percent to their lowest since late July on Monday, pressured by worries over slowing demand in top consumer China over the seasonally weak winter period.
The dollar built on last week's gains and rose towards a 16-month high on Monday as traders expect the US Federal Reserve to keep tightening monetary policy. A stronger US currency makes dollar-denominated metals more expensive for buyers paying in other currencies.
London's three-month copper futures rose 0.4 per cent to $6,080 a tonne, while aluminium edged up 0.3 percent. The United States had said on Friday it was postponing the enforcement of sanctions on Russia's Rusal, the world's second-biggest producer until December 12, as its top shareholder is working on a plan to cut his stakes.
Asian shares fell on Monday, extending weakness in global equity markets at the end of last week as soft Chinese economic data and falling oil prices rekindled anxiety about the global growth outlook.
A Special Offer for a Special Season! Get Stock Cash Tips Start with 2 Days Free Trial Click Here- Stock Cash Tips or Call Now- 9644405056
0 comments