The Nickel Industries Ltd (ASX: NIC) share price is currently one of the worst performers within the S&P/ASX 200 Index (ASX: XJO).
At the time of writing, itâs down 5.26% to 90 cents.
So what’s going on?
Well, China is one of the worldâs key buyers of commodities, so what happens in the country can have widespread ramifications for resource prices, the Nickel Industries share price, and so on.
According to reporting by Reuters, GDP growth in China has slowed considerably. In the three months to June 2022, GDP growth was reportedly down to just 0.4% year on year, which was lower than the 1% growth expected.
Looking at the quarter-on-quarter number, GDP dropped 2.6%, which was worse than the 1.5% decline predicted.
China’s lockdowns to stop the spread of COVID-19 are being blamed for the fall.
Chinese property market
ASX 200 mining shares are also having a rough time of it today. This comes as Bloomberg reports that Chinese home buyers arenât making payments on dozens of projects across many cities.
As noted by Commsec, the nickel price has sunk by more than 8%. Many other commodities are also seeing red, including the iron ore price, which has dropped heavily.
As a commodity business, Nickel Industriesâ earnings can significantly shift if the nickel price goes higher or lower over time.
Nickel Industries share price snapshot
Since the start of 2022, the Nickel Industries share price has fallen by around 38%.
It is also down by almost 18% over the past 12 months and 14% over the past month.
The post Why is the Nickel Industries share price 5% worse for wear today? appeared first on The Motley Fool Australia.
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*Returns as of July 1 2022
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More reading
- These ASX 200 mining shares are getting buried. What’s happening?
- Could the Nickel Industries share price more than double from here?
- ASX 200 mining shares glide lower as expert reduces commodity targets
- Broker names 2 ASX mining shares to buy in FY23
- What is the current dividend yield on Nickel Industries shares?
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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