It is reported that Nickel fell the most in two weeks in London on reduced demand from stainless steel makers. Copper and aluminum also declined as the dollar rebounded against the euro.

ThyssenKrupp AG said that its stainless steel orders plunged 46% in the six months to March 31. The alloy accounts for 64% of nickel demand.

Mr Alex Heath head of industrial metals trading at RBC Capital Markets in London said that "Pretty much every mill in Europe I know is running at 50% of capacity and order books are poor. I don't think there's a fundamental support to justify the nickel price we see May 13.”

Nickel for delivery in three months dropped USD 495 or 3.8% to USD 12,555 a metric tonon the London Metal Exchange. A close at that price would mark the biggest drop since April 28. Nickel was at a four month high May 12.

Mr Heath said that “If the dollar rebounds or oil can't hold gains, you'll find nickel will lose USD 1,000 quite quickly.”

(Sourced from Bloomberg)