(Updates with closing costs)
By Peter Hobson and Mai Nguyen
LONDON, Nov 23 (Reuters) – Nickel costs on Friday touched their lowest since October final 12 months, pulled down by worries a couple of provide surplus in 2019 and weaker demand from China, the most important client of the metallic.
Most different base metallic costs additionally fell sharply on issues that U.S.-China commerce talks subsequent week may fail, resulting in weaker financial progress.
Including to the bearish temper for nickel was information that German chemical substances large BASF plans to make use of much less of the metallic in its electrical automobile batteries. Electrical autos have been touted as a significant new supply of demand.
Benchmark nickel on the London Steel Trade closed down 0.5 p.c at $10,915 a tonne after touching a 13-month low of $10,735. It fell 3.9 p.c this week.
Probably the most lively nickel contract on the Shanghai Futures Trade settled 2.2 p.c decrease on Friday and down 5.Eight p.c this week.
“I heard some Chinese language buyers are taking pictures (down) the nickel worth. They suppose nickel manufacturing in Indonesia will carry the market into surplus subsequent 12 months, and demand for stainless will probably be unhealthy,” CRU analyst Peter Peng stated, including that they anticipated the nickel worth to fall to about $8,000.
NICKEL SUPPLY: Expectations of a provide avalanche hitting the nickel market subsequent 12 months as a consequence of new capability in Indonesia have despatched costs down greater than 15 p.c since September.
CHINA TRADE: U.S. President Donald Trump and his Chinese language counterpart Xi Jinping are anticipated to carry talks in the course of the G20 summit subsequent week.
CHINA STOCKS/YUAN: Shanghai equities fell by probably the most in 5 weeks on Friday and the yuan weakened, making dollar-priced metals costlier for Chinese language patrons.
BASF BATTERIES: Germany’s BASF has a brand new recipe for electrical automobile batteries which cuts the nickel content material by greater than half and makes use of extra manganese.
CHINA SCRAP IMPORTS: China’s October scrap metallic imports fell to their lowest since no less than 2014 amid tightening rules on waste imports.
Arrivals of scrap copper final month fell to 170,000 tonnes from 200,000 tonnes in September and scrap aluminium imports fell to 90,000 tonnes from 100,000 tonnes.
CHINA ALUMINA: China’s exports of aluminium uncooked ingredient alumina in the meantime soared in October to their highest since no less than 2014 at 460,072 tonnes.
TIN SURPLUS: The worldwide tin market is predicted to maneuver right into a surplus of 500 tonnes subsequent 12 months from a 7,500-tonne deficit in 2018, the Worldwide Tin Affiliation stated on Friday.
PRICES: LME copper ended down 0.Eight p.c at $6,207 a tonne, aluminium completed up 0.1 p.c at $1,949, zinc fell 2.four p.c to $2,519, lead slipped 1.Three p.c to $1,968 and tin closed 2.Three p.c decrease at $18,800.
Reporting by Peter Hobson and Mai Nguyen
Modifying by Jan Harvey and Louise Heavens