The most-traded January nickel contract on the SHFE stood at 85,070 yuan ($12,907) per tonne as of 03:00 BST, down 2,890 yuan or 3.3% from the previous session’s close.
Weakened demand for nickel amid ongoing environmental inspections across China has pressured the metal’s prices lower this morning.
“The environmental inspections have affected production of stainless steel which in turn has seen demand for nickel decline,” Ellie Wang, senior nickel and ferro-chrome analyst at Metal Bulletin, said.
“Trading volumes and prices of stainless steel have both fallen recently and the risk of a build-up in stainless steel stocks has increased, which is putting a great amount of downward pressure on nickel prices,” China’s Galaxy Futures said.
General weakness throughout the rest of the base metals as the markets continued to digest the news that US president Donald Trump had extended sanctions on North Korea.
The most-traded November copper on the SHFE contract fell 490 yuan or 1% to 49,670 yuan per tonne after Trump extended the scope of sanctions to individuals that provide goods, services or technology to North Korea.
He also said the Chinese central bank has told other banks in the country to stop doing business with North Korea with immediate effect.
This after prices had already come under slight selling pressure following hawkish comments from the US Federal Reserve which saw the dollar rebound.
Rest of complex weaker
Currency moves and data releases