Nickel prices seen falling as global surplus looms

Hedge fund Elliott Associates and Jane Street Global Trading are suing the London Metal Exchange for up to $500 million after the LME cancelled nickel trades on March 8 when prices soared to record highs above $100,000 a tonne in chaotic trade. 

"It's not just China where steel output is under pressure," said Warren Patterson, head of commodities strategy at ING.

India has raised its basic import duty on gold to 12.5% from 7.5% as the world's second biggest consumer of the precious metal tries to dampen demand and bring down the trade deficit.

“It is increasingly clear that concerns about demand are taking precedence over supply issues in the metals markets”.

Industrial metal prices have just seen their biggest quarter of falls in many years.

Gold has held up well relative to silver and platinum.

“Gold is ending lower this quarter due to the tighter Federal Reserve policy suggestions," analyst said.

The London Metal Exchange Index has tumbled 23% since the end of March.

"We still see metals falling as a recession in the US is fully priced in," said Commerzbank analyst.