Views of Ms. Kaynat Chainwala (Research Analyst - Base Metals, Angel Commodities Broking):
"After gaining the most in the last week on account of electric car boom, Nickel has completely changed its course this week and plunged lower by as much as 6 percent on both LME and MCX. Realisation that electric car battery boom is years away led to sharp correction in the Steel making metal.
Not only this, strict crackdown by Chinese state planning agency on railway infrastructure projects to prevent "disguised" debt issuance by local government via public-private partnership (PPP) projects weighed on Steel demand, in turn affecting nonferrous metal prospects.
Since infrastructure projects are highly Steel intensive and Stainless steel production accounts for two thirds of nickel demand, Nickel has been hit the most in the base metals space. Other base metals like Copper, Aluminium, Zinc and Lead have slipped too although losses have been restricted to sub 3 percent levels."