Double whammy of Steel and crude oil hits Nickel: Angel Commodities Broking

Ms.Kaynat Chainwala (Research Analyst- Base Metals, Angel Commodities Broking): “Nickel prices plunged to $8700/t, lowest level since 8th June 2016, as the weakness in iron ore prices for the past few sessions owing to bleak demand outlook spilled over to Steel prices. Iron ore, which is a critical raw material in Steel making, is therefore hurting other Steel related metals such as Nickel and Zinc as well.

Besides, Crude oil, which is an important input cost constituent for base metals, witnessed a sharp 3 percent plunge to one month lows of $46.74/bbl following Trump's withdrawal from Paris Climate accord. Apart from this, easing supply disruption concerns from Philippines and Indonesia is also weighing on the non ferrous metal.”