Nickel prices on the London Metal Exchange fell over 2% by the close of trading on Monday July 2, topping broad losses across the complex while escalating trade tensions and dwindling equity markets weigh on commodities.
Reaching a high of $14,940 per tonne over the day, nickel's three-month price fell sharply during afternoon trading, drifting back to the $14,500 per tonne region. "If Chinese investors' confidence continues to deteriorate, domestic demand for industrial metals could suffer and in turn lead to lower prices in the base metals complex," Metal Bulletin analyst Andy Farida said. "Nickel prices have enjoyed the strong rally thanks to growing demand from the stainless steel industry, which relies heavily on a growing Chinese economy. Even though demand has picked up considerably in the second quarter, the outlook in the second half of 2018 could remain hazy and undermine buying interest," he added.Slower economic conditions are piling pressure on the complex, with the Chinese yuan sinking to...