Nickel declines but remains near $26 thousand a tone

Nickel prices declined today even as the dollar steadied against rivals, with the metal pressured by trading between barriers of $24 thousand a $26 thousand a tone. 

Demand

Demand remains rather constrained on industrial metals however prices are underpinned by hopes Chinese demand in particular will rebound after easing off Covid 19 restrictions. 

Otherwise, traders hope for a Chinese economic recovery in March, with new home sales in China indeed for the first time in a year. 

Markets also await a batch of stimulus programs by the Chinese government, aimed at boosting heavy industries. 

Electric Cars

Nickel is witnessing strong demand from the electric car industries for its usefulness in batteries and maintaining energy compared to lithium ion batteries. 

Nickel is also used extensively in the steel industry for its strength, and as the US manufacturing sector improves, demand on nickel is expected to rebound as well. 

The dollar index rose 0.1% to 104.2 as of 15:20 GMT, with a session-high at 104.3, and a low at 104.01. 

Nickel spot futures at the London Exchange fell 3.4% to $25.7 thousand a tone.