In Commodity News 06/04/2015
Nickel futures in Shanghai ended the first week following their debut with a weekly loss amid concern slowing economic growth in China will sap demand for the metal used in stainless steel.
The metal fell 3.7 percent this week after trading began on the Shanghai Futures Exchange March 27. China’s economy probably expanded by 7.1 percent in the first quarter, according to a Bloomberg survey of economists. The biggest metals user grew 7.4 percent in 2014, the weakest pace since 1990. Steel output in the country will contract this year after demand has peaked and more mills are shut, the China Iron & Steel Association estimates.
“The slowing pace of economic growth in China is deepening an oversupply,” said Xu Yongqi, an analyst at Guotai & Junan Futures Co. in Shanghai. “Nickel production has held up, while demand for stainless steel is fading quickly.”
Nickel for delivery in July on the SHFE closed 1.2 percent higher at 97,300 yuan a metric ton ($15,714) after falling as much as 0.5 percent and rising as much as 1.7 percent.
China’s inflation may slow to 1.3 percent in March from a 1.4 percent gain the previous month, while producer prices will probably extend a record stretch of declines, according to Bloomberg surveys before data next week.
Copper for June delivery retreated 0.6 percent to close at 43,280 yuan a ton, down 1.1 percent this week. Tin futures, which also started trade on March 27 on the Chinese exchange, ended the week 0.4 percent lower.
The Comex and London Metal Exchange are closed Friday for a holiday in the U.S. and U.K, with no trading on the SHFE Monday.
