Nickel prices drop on worries China steel demand is losing its shine

20 November 2017

Shanghai nickel prices fell on Friday on worries about growth in Chinese steel markets, with the sector heading into a low consumption period over winter.

The base metal, used widely to help make stainless steel, was heading for a 7-percent weekly loss on the Shanghai Futures Exchange.

FUNDAMENTALS

SHFE NICKEL: The most-traded ShFE nickel contract had slipped 1.43 percent to 93,030 yuan ($14,044) a tonne by 0137 GMT. The contract closed 2.6 percent weaker the previous day.

OTHER SHFE METALS: The sell-off in nickel came amid across-the-board declines in Chinese metals futures. Active ShFE copper dipped 0.09 percent, while zinc was off 0.44 percent and aluminium 0.68 percent

CHINA ECONOMY: China’s economy cooled further last month, with industrial output, fixed-asset investment and retail sales missing expectations. * DOLLAR STEADY: The dollar steadied on Friday after coming off the week’s lows against its peers as earlier risk aversion in global financial markets receded, pushing up U.S. yields. * FREEPORT FIRE: A fire has broken out at the main port used by copper miner Freeport-McMoRan Inc in Papua, Indonesia, on Thursday night, company sources said. * BHP Billiton , hopes to fully divest its troubled U.S. onshore shale business in around two years and is also seeking a buyer for its nickel business in Australia. * VW: Volkswagen is not looking to secure long-term supplies of cobalt, a key ingredient of electric-car batteries, by investing in mines, a senior official at the automaker said.

Asian shares rose on Friday as strong U.S. earnings and a step forward in the U.S. Congress on tax reform brightened the mood, even though investors noted that many more hurdles must be passed to reach a final deal on tax cuts. DATA AHEAD (GMT) 0900 Euro zone Current account Sep 1330 U.S. Housing starts Oct 1330 U.S. Building permits Oct.

PRICES

Three month LME copper Most active ShFE copper Three month LME aluminium Most active ShFE aluminium Three month LME zinc Most active ShFE zinc Three month LME lead Most active ShFE lead Three month LME nickel Most active ShFE nickel Three month LME tin Most active ShFE tin ARBS ($1 = 6.6241 Chinese yuan renminbi)

Source: Reuters

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.