HANOI: Nickel prices fell on Wednesday, with the Shanghai contract shedding nearly 6%, after a broader sell-off in the iron ore market and as a more infectious coronavirus strain in Britain dimmed hopes of a swift global economic recovery.

The most-traded March nickel contract on the Shanghai Futures Exchange tumbled as much as 5.9% to 121,160 yuan ($18,492.06) a tonne, its lowest since Dec. 9.

Three-month nickel on the London Metal Exchange fell to a level unseen since Dec. 8 at $16,295 a tonne, down 1.9%.

Nickel, used in making stainless steel, followed declines in ferrous futures. The Dalian iron ore May contract fell 5.1% and ShFE stainless steel lost 2.5% due to a trading limit imposed by the Dalian Commodity Exchange.

Broader financial markets were also under pressure by a new coronavirus strain discovered in the United Kingdom that officials say is up to 70% more transmissible than the original, causing concerns over a sustained global economic recovery.