Subject re: nickel fights back for the nickel miners!! Posted...

Subject re: nickel fights back for the nickel miners!!
Posted 22/12/04 19:02 - 5 reads
Posted by kesmet
Post #467357 - in reply to msg. 467354 - splitview

Spot on Tom924.

Nickel requried by all Steel Alloy manufacturers and booming in Chinese Demand, not to mention used in various Catalytic processes by oil refiners and petrochemical plants.

Still do not understand how Ni has moved up so much yet nickel stocks in ASX have basically sat on their ASSSSEs

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IMHO Kesmet it's like this.

Nickel was popular around 12 months ago, now it is not.

The nickel boom was expected by the majority to finish a long time ago.

The majority never expected prices to go so high in the 1st place.

Now we have Nickel Miners like JBM trading at around the same price they were 12 months ago.

12 Months ago JBM had not pocketed $95 million in profits.

12 Months ago nobody expected prices of of $6.76us/lb for Nickel on 22/12/2004.

They got in for quick money & took it.

Now they do not know what to think.

The charts for Nickel prices & Nickel miners are looking uncertain.

Charts in the end reflect Fundamentals.

Fundamentals suggest if Nickel drops below $6us/lb over the next 6 months, Nickel inventories will run out.

Run out, Nothing left to buy.

Stainless steel producers & other Nickel users will be forced into shutting down operations.

They will be forced to tell staff to go home & take a holiday because they can't work because not enough Nickel is available.

The only way to avert this problem is by increasing Nickel prices beyond current levels.

Nickel prices will rise to avert a devastating shortage.

When prices are really high(unlike todays levels), the strong Nickel consumers will survive & the weak Falter.

It's just more good news for JBM to add on the top of everything else.

JBM will break $5 shortly regardless of Nickel prices.

Cheers.