ni down again , page-25

vayama,

melua is incapable of interpreting and conveying an analysts opinion unless it is slanted in favor of his position.

so to enlighten those that don't take what melua says with a grain of salt here is what the article suggests...

stainless steel BUYERS are cutting back their purchases due to stainless steel producers charging a surcharge against the higher cost of the raw materials such as NICKEL.

but nickel has fallen 40%? yes it has but the nickel which was bought at $50,000/t is now finding its way into the steel mills and the producers are applying a surcharge to recover the higher costs of these raw materials.

the stainless steel buyers arent keen to pay the higher fee and are buying less for the time being until the surcharge reduces.

this is forcing stainless steel producers to cut back production which in turn has created less demand for nickel.

it is expected that the nickel purchased at between, say, $40,000 - $50,000/t will be absorbed by october which will result in the surcharge reducing and thus the buyers will return to the stainless steel market.

so it is expected that from october, demand for nickel will begin to return.

cheers