BEIJING, Nov 27 (Reuters) - Nickel prices in Shanghai fell on Monday to a 14-month low, dragged down by weakening demand from the stainless steel sector and rising supplies.
The most-traded December nickel contract on the Shanghai Futures Exchange SCFcv1 was down 3.8% to 124,200 yuan ($17,223.45) per metric ton as of 0159 GMT, the lowest since September 2022.
Three-month nickel on the London Metal Exchange CMNI3 slid 0.5% to $16,055 per ton, extending losses after hitting a two-and-half-year low last Friday.
Analysts attributed lacklustre demand for the metal to wider production cuts among Chinese stainless steel producers, the main consumer of nickel, and lower-than-expected consumption from electric vehicles.
Also weighing on the market were rising stocks of the metal, as domestic output has been on a steady uptrend this year with a capacity ramp-up.
SHFE nickel stocks rose 16.4% last Friday NI-STX-SGH to 12,623 tons, about four times higher than the levels at the beginning of this year.
Other base metals prices were mixed on Monday as investors turned their focus to U.S. inflation data, due Thursday. U.S. inflation is expected to slow to its lowest since mid-2021.
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