whats really going on.

There is some confusion out there about why nickel prices have dropped, so I'll repost this copy of a reply I posted on another forum-

Earlier this week the big Russian Nickel producer Norlisk had several ships laden with nickel dock in Amsterdam. Some say the Russians were trying to flood the market with nickel to create a sense of urgency for Lionore shareholders (This company is in a takeover bidding war, Norlisk has just upped its offer)

Others say that its purely coincidence; the port where the ships originate from is about to freeze over for about 6 weeks and there will be no further deliveries until then. Norlisk was just getting the last shipments out.

In either case the sudden influx of a slight extra bit of nickel on the LME has caused the nickel buyers to offer a bit less and the price of nickel has dropped 5-10%; no big deal so far.

But some of the stainless steel producers are finding it hard to get finance to buy large quantities of nickel at todays prices (less efficient producers) so they are announcing that they are cutting back on production.

These announcements plus the slight lowering of price has caused a small number of AGM and other nickel shareholders to panic.

Nothing at all to worry about, all back to normal as soon as the market realises- hey theres a shortage of nickel, Norlisk isnt delivering any!