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China's Tsingshan roils nickel market with buying spree

Nickel prices slid to their lowest for the year in the second quarter as investment funds sold on the expectation of slowing demand from Chinese stainless steel mills as economic activity came under pressure from the US-China trade war.

July 19, 2019 / 08:30 PM IST

Chinese firm Tsingshan Holding Group has been buying large quantities of stainless steel ingredient nickel on the London Metal Exchange (LME) to supplement its own output, two sources familiar with the matter said.

They could not specify the amounts Tsingshan has bought.

Nickel prices slid to their lowest for the year in the second quarter as investment funds sold on the expectation of slowing demand from Chinese stainless steel mills as economic activity came under pressure from the US-China trade war.

But as unexpectedly higher demand numbers started to trickle out, the same funds rushed to cut their bets on lower prices.