abn amro calling nickel a sell

From ABN Amro today:

"LME inventories of nickel have been rising steadily over the past month. Inventories began June at 8,460 tonnes, up nearly 90% on the past month and nearly triple the 2,982-tonne low of February. Inventory is now at levels last seen in July 2006, when spot nickel was trading at US$12/lb – nearly half its current price. The nickel price seems to have more lives than the proverbial cat. The market has grown wary of calling the price lower, although there are plenty of triggers. The LME stock increase is one trigger, but so too are the sharp increase in low-grade nickel laterite ore from Indonesia and the Philippines (up 992% in January-April to 3.8Mt), cutbacks by stainless steel producers, the shift towards lower-grade nickel-bearing stainless steels and the push towards nickel-free ferritic steels. Our directional call for nickel remains lower. We forecast nickel averagin US$19/lb in 2007, sliding 32% in 2008 to US$13/lb and to US$9/lb in 2009. Our long-term nickel price is US$6/lb (US$13,230/tonne)."

The party is coming to an end.