Nickel extends losses below $21,000

Nickel prices fell on Wednesday as the dollar rose against most major rivals while markets monitor the developments of the US debt ceiling crisis.

Chinese Demand 

Markets continue to rely on Chinese demand, as Beijing remains the world's top metals consumer, with investors optimistic about increasing Chinese purchases of industrial metals since lifting Covid 19 restrictions.

The Dollar

The dollar index rose 0.4% to 102.9 as of 15:53 GMT to 102.9, with a session-high at 103.1, and a low at 102.5.

Dollar's strength continues to weigh on all dollar-denominated commodities such nickel, which is heavily used in steels and electric battery industries. 

Debt Ceiling

A recent delay to US debt ceiling negotiation between US President Joe Biden and Congressional Republican leaders reflect the deep divisions in the US political system. 

The White House is attempting to jam through its budget and raise the debt ceiling so that US doesn't default on its debts.

However, Republicans are demanding spending cuts before agreeing to raise the debt ceiling. 

The International Monetary Default warned that a US delay in paying its debts will lease to a drop in credit rating. 

On trading, nickel spot prices tumbled 2.3% to $20.8 a tones as of 16:03 GMT.