How much do you think they’ve lost?Obviously, the LME nickel...

How much do you think they’ve lost?

Obviously, the LME nickel price is still quite volatile, evenwith sort of limit up, limit downs that have been put in place. I think at onestage, the mark to market was $5 billion. That obviously came downsignificantly when LME sort of reopened and hit the limit downs for a number ofconsecutive days. It has sort of since turned back up again. There’s probablyabout 140,000 tonnes of nickel still left. I believe they’ve closed out about60,000 tonnes of the 200,000-tonne position. The chairman may continue to holdthat position. One of the questions that we get is why would a stainlesssteel and nickel producer hold a short position? I think a number of reasons.

For their business, stainless steel, lower nickel prices isactually beneficial and I mean, they produce the world’s cheapest stainlesssteel. They see cheap stainless steel fostering further demand and use ofstainless steel. What’s happening in Indonesia is they have been able toconvert some of their lines of historically-produced nickel pig iron to producenickel matte, which is a class one nickel product. And so, with that coming onthey’ve got about 100,000 tonnes of capacity which is coming online now with afurther additional 100,000 to 200,000 tonnes of capacity. There’s a highpressure acid leach plant which has about 60,000 tonnes of nickel capacity,which is commissioning and ramping up very well.

There’s a second plant behind that of another 60,000 and thenthere’s a third plant over in the other industrial park of about 120,000. So,with all of that new class one nickel capacity coming on. I think you probablytook the view that the LME price was perhaps overcooked. I think perhaps theposition went on a little early, that class one nickel, whilst it’s all sort ofbeen processed and slowly ramping up, it’s not quite there yet, but itcertainly will be. I mean, if you take even Tsingshan just recently announced ajoint venture with Volkswagen for the production of class one MHP, increasinglyI think you’re going to see more…