Russia’s metal producers dropped to the lowest level since 2009 on concern economic growth in China is slowing, curbing demand for commodities.
OAO GMK Norilsk Nickel, the world’s biggest producer of the metal, lost as much as 4.2 percent, trading down 2.4 percent at 4,360 rubles by 3:06 p.m. in Moscow, the lowest since December 2009 on a closing basis. OAO Novolipetsk Steel slid 1.2 percent to 41.40 rubles, the weakest level since April that year, after dropping as much as 4 percent. OAO Severstal, Russia’s second-largest steelmaker, tumbled 2 percent to 212.40 rubles, the lowest since November 2009.
Morgan Stanley cut its 2013 gross domestic product forecast for China today, joining banks from UBS AG (UBS:US) to Barclays Plc, after a weaker expansion in exports, industrial output and new lending last month. Most metals, including nickel and copper, retreated in London.
“Metal producers are pricing in concerns about the deceleration of Chinese growth,” Mikhail Stiskin, an analyst at Sberbank CIB in Moscow, said by phone. “Commodity prices have returned to 2009 levels.”
Nickel fell 0.8 percent to $14,155, the seventh day of declines and the lowest intraday level since July 2009. Steel has lost 49 percent over the last 12 months and trades at $155.
NLMK’s global depositary receipts declined as much as 5.4 percent in London, falling 1.7 percent to $13.02. Severstal dropped 1.3 percent to $6.645.
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