LME nickel prices have slumped by over 30 percent in the last month as the global financial crisis has raised fears that a severe economic recession is imminent. Even government efforts to shore up the banking system have done little to boost confidence and staunch the downward trend in nickel prices. True, news of financial rescue plans did initially lift the LME cash nickel price from a low of 11,950 dollars/t on October 10~(th) to 13,220 dollars/t a few days later but the recovery was short-lived. The LME cash price has since dropped back to 11,428 dollars/t, suggesting that investors are not convinced that government actions will be sufficient to prevent a global recession.
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