Nickel highlights

摘要

Whatever is really behind the increase in LME warrant cancellations, the market has picked up on the degree of concern about the availability of material, Prices are up by over 8% in the past 10 days, pushing effortlessly back through the $16,000/tonne level. Granted, all base metals received a boost in the past week, as improved sentiment (derived in part from the perception that the Fed is getting dose to QE3) triggered short covering, but the nickel contract got an undeniable boost from the cancelled warrant movements too. Until we can note some real evidence of a pick-up in restoddngfrom the stainless steel sector, we do not expect to see any furtherfireworks from nickel. Having said that though, the recent march up to the +$l6,000/tonne levels came fairly painlessly. Prices are still likely to be prone to return visits to the $15,000s, but will be intermittently propelled higher when short covering rallies ignite.