Nickel leads fall as scrips dip

Nickel fell the most in almost two months, leading declines on the London Metal Exchange, as a fifth day of tumbling share prices signalled growing concern about slowing US economic growth and demand for raw materials.

Nickel fell more than 3 per cent and copper and zinc lost more than 2 per cent as European and Asian stock markets extended last week's rout. Shares of the biggest mining companies slumped, with BHP Billiton and Anglo American losing more than 3 per cent.

"It's jitters about the world's stock markets,'' said Gerry Schubert, a director of metals in London at Fortis Bank, a member of the London Metal Exchange. "It's the same story as last week.''

The Dow Jones Stoxx 600 Index fell for a fifth day, bringing its loss since February 26 to 7.5 per cent. The Morgan Stanley Capital International Asia-Pacific Index slid as much as 4.4 per cent to 138.41, the lowest since January 12.

Nickel for delivery in three months declined $1,650, or 4 per cent, to $39,450 a metric ton as of 8:47 am London time. It earlier fell as much as 4.9 per cent to $39,100 a tonne, the largest intraday drop since January 8. The metal has fallen 6 per cent from a record $41,990 a tonne posted February 27.

Nickel stockpiles tracked by the LME gained 204 tonne, or 5.9 per cent, to 3,690 tonne, the exchange said today in a daily report, enough for less than two days of global consumption. Inventories have jumped 12 per cent in the past four sessions.

Copper dropped $145 to $5,875 a ton and traded as low as $5,796, the lowest intraday price since February 21, and zinc fell $105 to $3,215. Aluminum lost $60 to $2,688 a tonne, lead slipped $40 to $1,815, tin lost $150 to $13,050.