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Nickel prices hit a weekly low on Nov. 17 after a benchmark China stainless steel futures contract plunged to its lowest level in five months as producers faced high raw material costs and sluggish demand, Reuters reported.
The three-month nickel on the London Metal Exchange fell 1.5% to $ 15,655 a tonne, its lowest level since November 10.
Nickel contracts, the most traded on the Shanghai Futures Exchange, fell 3.1% to 116,100 yuan ($ 17,685.23) a tonne after five straight sessions.
“The continued weakness in the Chinese stainless steel market appears to be weighing on sentiment on nickel,” said Wenyu Yao, senior commodities strategist at ING.
Stainless steel futures in China fell 3.6%.
“The supply of nickel ore is limited and the price is high, while the demand for stainless steel in processing remains unchanged,” said analysts at Huatai Futures.
Stainless steel mills in China will face higher costs for the main ferrochromium if South Africa is expected to move forward with proposals to impose taxes on chrome ore exports.
