Nickel holds despite global oversupply fears

Nickel prices held steadily on Wednesday, as the US dollar dropped against its peers, fears over the global oversupply are still weighing down on the industrial metal.

Most industrial metals, including nickel, are being weighed down by the coronavirus crisis and its impact on economic activities, which weakens demand for commodities and metals and lead to oversupply.

Meanwhile, the steel industry has increased its production in China, the world's largest consumer of industrial metals, which renewed optimism about the demand for nickel used in that industry.

Analysts expected the lockdown restrictions had caused a drop by 70% in global steel production, while demand this year is expected to reach 2.35 million tonnes.

The dollar index fell 0.2% to 93.4 points at 13:28 GMT, with a high of 93.9 and a low of 93.3.

As of 13:38 GMT, Nickel spot futures rose by 0.1% to $14,172.1 per tonne.