Nickel hits year low, zinc slumps as steel prices fall
Reuters reported that nickel prices touched the lowest in a year on Tuesday and zinc also slid, pressured by a fall in Chinese steel prices and ahead of expected weaker Chinese data. LME nickel fell more than 1% to USD 8,680, the lowest since June 2016, before rebounding to finish at USD 8,800, up 0.1%.
London Metal Exchange zinc closed down 0.9% at USD 2,473 a tonne, extending a drop of 1.5% in the previous session. LME aluminium closed unchanged at USD 1,889. Copper ended down 1% at USD 5,717, lead closed up 0.2% at USD 2,060 and tin climbed 1.8% to USD 19,400.
Caroline Bain, chief commodities economist at Capital Economics in London, said "We expect the May China data to extend the downturn that began in April and would have negative implications for metals. We haven't seen any signs from the Chinese authorities that they're looking to stimulate the economy. They're trying to rein in credit growth, they're trying to curb excessive behavior in the property market, which is very bad news for metals."
The data on Chinese retail sales, industrial growth and urban investment is due on Wednesday and consensus forecasts are weaker for all three.
Source : Reuters