re: listen to these analysts
Some one forgot to tell the Chinese to cut production in half So this analysts can keep his job.
pieces........
Nickel Gains in London as Inventory Has Biggest Drop in 6 Weeks
By Katy Watson
Aug. 31 (Bloomberg) -- Nickel rose in London after inventory fell the most in six weeks, fuelling concern that supply may fail to keep pace with growing demand from stainless- steel makers.
Stockpiles of monitored by the London Metal Exchange dropped 720 metric tons, or 12 percent, to 5,172 tons, the LME said today in a daily report. That's the biggest percentage decline since July 14. Rising consumption from groups such as Chinese stainless-steelmakers may create a global production shortfall of 25,000 tons this year, Societe Generale said last week. Nickel prices have more than doubled in 2006.
``Stainless steel has held up really quite strongly and therefore so has nickel,'' said David Thurtell, a metals analyst at BNP Paribas in London. ``Things are still very tight and those stocks declines today underscore that.''
Nickel for delivery in three months on the LME climbed $1,000, or 3.6 percent, to $28,500 a metric ton as of 11:48 a.m. local time. It traded at a record $29,950 on Aug. 22.
Nickel for immediate delivery is even more costly. The premium for cash over three-month futures was bid at $4,000 a ton on the LME. In an adequately supplied market, commodities for future delivery usually cost more.
The stockpile levels for nickel are ``extremely meager,'' said Tony Warwick-Ching, an analyst at CRU, a London-based consulting company. ``All the signs are that demand is very solid for the end-product.''
Also on the LME, copper gained $180 to $7,630 a ton, aluminum added $23 to $2,508, lead rose $20 to $1,235, tin was $125 higher at $8,975 and zinc advanced $70 to $3,410.
(20min delay)