Nickel price is currently at $4.4792 and the price rise against...

Nickel price is currently at $4.4792 and the price rise against rising stocks at LME may well indicate an awareness of the dramatically falling Nickel production due to mine closures and the possibility of a shortage in a couple of months.

Note that if there is a shortage requiring mine re-commissioning, there will be a delay of several months while the mines get going. The reason why the Nickel inventory is still rising is that closed mines are still emptying their own stockpiles (I assume).

Thus if we could get numbers on actual production verses actual consumption we may have better picture of where the spot price is going.

It's been two weeks since the all time low in the Nickel price ($3.9712), it has put on 12.8% since then. If I draw a trend line through the price chart (ignoring the recent spike) I find that the steady price rise will cross the $5 line around the 5^th of January and $5.5 around the 25^th.

Note that if the Nickel price settles at around $10/lb, Albidon will comfortably be in profit but the price will not be high enough to entice many of the closed mines to re-open.

Robert.