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Nickel tumbles 5-percent to 2-year low on weak demand

By Julie Crust and David Sheppard LONDON (Reuters) - Nickel fell to a two-year low below $19,000 a tonne on Thursday on weakening demand from stainless steel mills, while copper eased on growth fears. Nickel for three-month delivery fell more than 5 percent to $18,875 a tonne, its lowest since June 2006, before recovering to trade at $19,050 at 2:31 p.m. GMT (10:31 a.m. EDT). On Wednesday it closed at $20,000 a tonne, after falling 2.7 percent on weaker demand from stainless steel producers, which account for about two thirds of global nickel demand. "There has been increasing evidence of weak demand from the stainless steel sector in the third quarter," Calyon analyst Robin Bhar said. "$20,000 a tonne was viewed as a firm floor for prices. Below here we could see nickel pig iron producers in China cutting production which... [read full story]                    

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