Nickel highlights

摘要

Nickel prices spent most of December consolidating in a 25,150-27,625 dollars/tonne trading range. With LME stocks holding at multi-year highs, and with the recovery in the stainless steel markets put on hold until 2008, there was little to be bullish about, apart from the apparent healthy appetite for forward buying. However, the New Year rally that saw gold and oil clock up impressive gains also provided some momentum to the base metals, and nickel was one of the main beneficiaries as short covering was triggered. It took three-month prices from 26,000 dollars/tonne to 30,000 dollars/tonne, but the band of heavy overhead resistance that starts at this level capped any further progress. Prices subsequently gave back their gains, as US recession fears returned with a vengeance later in January and equity markets sold off heavily.