(Updates with closing prices in second paragraph.)
Nov. 15 (Bloomberg) -- OAO GMK Norilsk Nickel, the world’s largest producer of the metal, fell to its lowest level in 13 months in New York as concern that the European debt crisis will cut demand for commodities pushed down nickel prices.
The Moscow-based company’s American depositary receipts dropped 5.7 percent to $16.90, the lowest price since September 2010. Nickel declined to the lowest level since February 2010, falling as much as 1.4 percent on the London Metal Exchange to $17,549 a ton, as Italy struggled to form a new government and Italian and Spanish government bond yields surged.
“Due to the new European problems, steel and industrial metals are collapsing,” Oleg Petropavlovskiy, a metals and mining analyst at Broker Credit Service in Moscow, said by phone. “Norilsk Nickel is reflecting today’s drop.”
Norilsk completed a $4.5 billion share buyback on Oct. 28.
“The price boost that we saw from the share buyback is no longer in effect, so the shares are more influenced by fundamental market factors,” Petropavlovskiy said.
--Editors: Marie-France Han, Emma O’Brien
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