Nickel hit a six-year low yesterday, as Greece’s debt crisis obliterated confidence in global growth.
The London Metal Exchange’s Index of six industrial metals is heading for a fourth-straight quarterly loss, the longest such streak since 2001. Greece’s standoff with its creditors is adding to economic concerns amid a slowdown in China.
Nickel for three-month delivery retreated 4.9% to settle at $11,835 a metric ton at 5:51 p.m. on the LME, the biggest drop since September 9th. The price touched $11,730, the lowest since May 2009. The metal has lost 22% of its value this year.
Daily LME data showed nickel stocks rose 870 mt to 459,018 mt, halting a falling trend seen since the start of June and again sowing doubts that the market is poised to tighten significantly.
The Shanghai Futures Exchange (ShFE) approved three new nickel brands – including OAO Norilsk Nickel – today for delivery against its contracts, as persistently high stockpiles and risk aversion over Greece weighed on the market.