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re: economically speaking.monark Dolphin,

I am with you on nickel, for the long haul, eg 5 years. Unlike yourself I don't have a price target, but expect to see mostly double digit short/med term, prices high enough to make expensive laterite investments look attractive to the big resource companies..

I think on the demand side you should be able to look at steel and the iron ore market, with stainless intensity following steel intensity as the world industrialises and urbanises. The analysts have repeatedly been behind the game with steel, and we are still looking at closer to 20% pa than 10% for steel production in China. One month in China last year, and I am convinced we are only in the early stages of this boom. Whilst the pace of industrialisation is mind boggling, so is the horrendous mass of pitiful poverty waiting to enter.

With stainless steel in particular China has only begun, and their low production costs will allow for higher Ni input costs for any given stainless steel product price. Not only that but a higher stainless steel price for the same consumer goods price.

I am suprised at the severity of the MCR retrace, but can't imagine we stay under $2 for long. Ni was still above 14 on Kitco this morning, and we are half way through another VERY lucrative quarter.

I have no expertise in reading the short term markets, but believe I have a valid world view wrt nickel, which will prove lucrative over the next few years.

With recent consolidation I think we can also see major capacity additions to the market ever more "managed". The big boys have tasted the benefits in iron ore.

Goodluck,
EL