Wednesday, March 21, 2007 6:26:46 AM
Nickel Price Getting Ahead Of Itself?
LME NICKEL STOCKS ROSE 654 TONNES TO 4,302 TONNES
21 March 2007 09:00
"Indications at 7:55 am CST show nickel selling down by $.40/lb . Traders start this week with more than a few concerns to think about. First, while doubtful to have much effect, China raised its interest rates on Saturday by .27 points. Secondly, after days of record breaking growth, the market is due for a correction, however minor it might be. And most importantly, there is talk of a stainless steel producer revolt, of sorts. If you missed our weekend review, you might want to give it a look. There are reports of producers cancelling and delaying nickel orders and stopping stainless steel production altogether. If true, LME nickel inventories should start growing, as they did this morning by a mere 138 tons. Is this evidence of a buyers boycott, or just the normal flow of inventory seen every week? That is the million dollar question, and traders will be watching inventory levels and news closely this week."
LME NICKEL STOCKS ROSE 654 TONNES TO 4,302 TONNES
21 March 2007 09:00
"Indications at 7:55 am CST show nickel selling down by $.40/lb . Traders start this week with more than a few concerns to think about. First, while doubtful to have much effect, China raised its interest rates on Saturday by .27 points. Secondly, after days of record breaking growth, the market is due for a correction, however minor it might be. And most importantly, there is talk of a stainless steel producer revolt, of sorts. If you missed our weekend review, you might want to give it a look. There are reports of producers cancelling and delaying nickel orders and stopping stainless steel production altogether. If true, LME nickel inventories should start growing, as they did this morning by a mere 138 tons. Is this evidence of a buyers boycott, or just the normal flow of inventory seen every week? That is the million dollar question, and traders will be watching inventory levels and news closely this week."
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