OAO GMK Norilsk Nickel (NILSY:US) fell to a three-month low in U.S. trading as prices for the metal slumped on concern a slowdown in China will stem demand.
American depositary receipts of Norilsk, the world’s largest producer of nickel and palladium, slipped 3.4 percent to $17.14 at the close in New York, the lowest since Jan. 13. Nickel declined 4.4 percent on the London Metal Exchange to $17,505 a ton.
China said on April 13 gross domestic product rose 8.1 percent in the first quarter, below the median analyst estimate and the slowest pace for 11 quarters. Nickel tumbled on concern a retreat in the world’s second-largest economy and biggest exporter of goods will crimp demand for raw materials.
“Norilsk stock is under pressure because of the low nickel prices, which reacted to the negative Chinese data,” Valentina Bogomolova, an analyst at UralSib Capital in Moscow, said by phone.
Nickel, copper and iron ore have the greatest future cost pressure, Deutsche Bank AG said in a report today.
Norilsk got 22 percent of revenue from Asian sales in 2010, up from 17 percent in 2008, data compiled by Bloomberg show.
Shares of Norilsk (GMKN) lost 2.6 percent to 5,100 rubles, or the equivalent of $172.20, on Moscow’s Micex Index today. One ADR represents one-tenth of an ordinary share.
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