Goldman Sachs on Thursday slashed its 2016 price forecast for nickel by more than 20%, primarily citing challenges to Chinese metals and mining demand.

China’s metals and mining commodity demand is likely to continue to be challenged by a substantial debt and property inventory overhang and further dollar strength, the influential US investment bank said in a note.

Goldman cut its 2016 outlook by 29% for nickel to $14500/t.

Low Chinese demand, increasing competition from nickel pig iron output in the country along with a depreciating Chinese currency, are among the factors that could provide a downside risk to nickel prices, Goldman said.

• [Editor:Juan]