Nickel highlights

摘要

As the weeks pass, nickel's fundamental position is not getting any better, but despite this, cash quotes are still holding above $17,000/tonne. In fact, there is some evidence that the recent pricing levels are doing more harm than good with stock holders and consumers alike still staying dear of restockingtheir holdings. Many market participants are expecting a downward price correction to be just around the comer -something that we are also expecting - and hence they are not yet ready to financially commit to anything more than their minimum physical requirements for the next month. Overall, our position on nickel remains unchanged, with timid demand and rising stocks expected in the first quarter. We may see stronger pricing and even a quarterly deficit in the second quarter for the first time in two years, while recovering economic growth and improving demand is expected to characterise the second half of the year, with prices strengthening into the year-end again.