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Commodities

Nickel price under pressure as supply grows, China uses less

The Philippines and Indonesia join the output party but a tad too late

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The Philippines has resumed operations of some of its nickel mines, easing fears of global supply shortage.   © Reuters

TOKYO -- The price of nickel, a raw material needed to make stainless steel, has been falling. Two factors are weighing on the price. The Philippines and Indonesia have increased their production of the ore from which nickel is made. In addition, China, the world's largest consumer of stainless steel, is buying less ore, fueling oversupply fears and putting further downward pressure on nickel.

The benchmark three-month nickel futures contract on the London Metal Exchange is currently trading at around $9,000, down over 20% from a recent high hit in February.

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