May 11 (Bloomberg) -- Nickel, this year’s best performer on the London Metal Exchange, dropped for the first time in four days as the dollar strengthened and on concern that China, the biggest consumer, will seek to curb economic growth.
The U.S. Dollar Index, a six-currency gauge, rose for the first time in three days, making dollar-priced metals more expensive to other currency holders. Chinese consumer prices rose the most in 18 months, spurring speculation the government will raise borrowing costs. China uses about 30 percent of the world’s nickel, according to Deutsche Bank AG.
Global production will jump 6.8 percent, the most since 2000, according to Bank of America Merrill Lynch. Vale SA’s $4.3 billion Goro mine in New Caledonia is scheduled to start this year. China more than tripled first-quarter production of cheaper nickel pig iron, according to Shanghai Metals Market.
“In the short term, the physical markets remain tight, but increasing production of nickel pig iron in China has put the brakes on the recent rally,” Randy North, a trader at RBC Capital Markets, said by phone from New York. “Dollar strength and general weakness in the rest of the base metals complex isn’t helping matters either.”
Nickel for delivery in three months dropped as much as 5.2 percent to $21,820 a metric ton. The contract was down 4.4 percent at $21,986 at 11:42 a.m. in London, paring this year’s gain to 19 percent. Copper, aluminum, zinc and tin also fell.
To contact the reporter on the story: Anna Stablum in London at
Tidak ada komentar:
Posting Komentar