Nickel dropped to 2-month low

Nickel prices in London fell below two-month lows

Nickel dropped to 2-month low

After the Chinese Tsingshan announced a major supply deal, nickel prices in Shanghai also fell due to over-supply concerns. On the London Metal Exchange, 3-month nickel fell 5% to $ 16,555 / ton, the lowest since December 31, 2020.

The June nickel contract on the Shanghai Futures Exchange fell 6% to 130,510 yuan / ton ($ 20,176), the lowest since February 5th.

It is stated that Chinese nickel and stainless steel giant Tsingshan Holding Group's agreement to supply 100,000 tons of nickel matte to Huayou Cobalt and CNGR is putting pressure on prices. Analysts pointed out that Tsinshan's mass production will trigger a supply-side reform, breaking the supply bottleneck for nickel sulphate, and pointed out that there is limited room for nickel prices to rise.

Copper prices fell slightly at the LME. At 05.56 TSI fell 0.1% to $ 9,094 / ton, tin fell 1.2% to $ 23,800 / ton. Copper prices fell 1.2% in ShFE.