When the Chinese NPI supply has dried up we’ll definitely see it. LME nickel stocks will start to fall drastically.
As the supply of NPI becomes depleted and Chinese producers switch to refined nickel, competition for refined nickel is bound to get fierce; the competition for limited supplies will show up in nickel premiums.
Refined nickel, held in LME warehouses is not the answer - all the metal held in LME warehouses is only 1.5 months of global supply.
Oh yeah, I said three things are for sure – 3. Nickel is going higher, much higher in price.
Ask yourself, “when is the best time to invest?”
While you mull over that question here’s five more facts for you:
Nickel is currently unloved.
There aren’t any nickel names left. Without Inco or Falconbridge, who do you invest in if you want nickel? The largest nickel producing companies, Norilsk, Vale and Xstrata don't actually provide a lot of leverage to nickel as they are diversified miners - meaning they also produce iron, manganese, bauxite, aluminum, copper, coal, cobalt, potash, platinum-group metals, gold and silver.
Every country needs to secure supplies of needed commodities at competitive prices yet supply is increasingly constrained and demand is growing.
All of a sudden juniors exploring for nickel will become much more interesting. Especially so if they are working in geopolitically stable countries.
Pure junior nickel exploration plays aren't common.
“Someone's knockin' at the door
Somebody's ringin' the bell”
Let Em In, Paul McCartney
When opportunity knocks I open the door. Is nickel, and perhaps a nickel junior resource company, on your radar screen?
If not, one should be.***
MPJ Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
