Nickel leads de­cline in base me­tals amid China credit con­cerns

The Pak Banker - - BUSINESS -

BEI­JING: Nickel in Lon­don dropped from its high­est level in al­most two weeks as base me­tals re­treated amid con­cerns that ex­ces­sive credit growth is in­creas­ing risks in China, the big­gest con­sumer of raw ma­te­ri­als. Min­ers' shares also fell. The ex­pan­sion in China's debt rel­a­tive to gross do­mes­tic prod­uct could pres­sure the coun­try's credit rat­ing, Stan­dard & Poor's said on Tues­day, less than a week af­ter the cost to in­sure Chi­nese bonds against de­fault rose to a fouryear high. In­vestors also aren't con­vinced that pro­duc­ers have done enough to cut out­put. Open in­ter­est in nickel ex­panded to a record on the Lon­don Metal Ex­change last week as traders boosted bear­ish wa­gers. "Mar­ket sen­ti­ment changed as in­vestors re­turned their fo­cus to the fun­da­men­tals -de­mand in China hasn't re­cov­ered from the Lu­nar New Year break, while pro­duc­tion is climb­ing af­ter the hol­i­days," said Xu Maili, an an­a­lyst at Ever­bright Fu­tures Co. in Shang­hai. Nickel, used in stain­less steel, lost as much as 1.3 per­cent to $8,230 a met­ric ton and traded at $8,255 a ton by 3:30 p.m. in Sin­ga­pore fol­low­ing its high­est close since Feb. 4. All other me­tals in Lon­don fell. Alu­minum fu­tures in China ad­vanced to the high­est level in al­most four months be­fore slid­ing as much as 1 per­cent.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.