MCR will be going once again towards the one dollar mark and probably above this. Nickle is once again going up as shortage and inventory stockpiles are becoming reality. We will see Nickle as well as the Nickle miners going up in the near to medium future as I have been saying a couple of days ago. Following is an article from kitco metals to substansiate what I have been saying.
Good luck to all and watch MCR once again becoming a market darling with two new mines opening and production increasing to new hights, once the new contacter starts mining on the first of July.
June 18 (Bloomberg) -- Nickel futures surged to a three-month high on the London Metal Exchange as inventories slumped at warehouses monitored by the bourse, attracting hedge funds back to the market.
Hedge funds, partnerships that invest in a range of securities, had sold nickel contracts after prices reached a 14- year peak in January. LME stockpiles of the metal, used to make stainless steel malleable and rustproof, have fallen every day for five weeks to a three-year low of 8,484 metric tons.
``The funds were out and now they are back in,'' Stephen Briggs, analyst at Societe Generale bank in London, said in an interview. Nickel production will be short of demand this year and next because of growing use in Asia, he said.
Nickel for delivery in three months rose $800, or 5.7 percent, to $14,800 a ton in electronic trading on the LME at 9:17 a.m., matching the highest since March 1. It has gained 16 percent this week. Prices reached $17,700 a ton on Jan. 6.
Nickel prices more than doubled last year as demand surged in China, the world's biggest user, outpacing new supplies. No new mines are planned until 2005 when Inco Ltd., based in Toronto and the world's second-largest producer after OAO GMK Norilsk Nickel, starts up its Voisey's Bay project in Newfoundland.
Copper fell $15 to $2,615 as the euro weakened against the dollar, amid speculation the Federal Reserve will start raising its key interest rate this month to stem accelerating inflation. The euro was down 0.5 percent to $1.2002, making dollar- denominated metals more expensive to buy with the European currency.
Aluminum rose a fifth day, by $1 to $1,699 a ton. Lead was up $10 to $837 and tin added $100 to $8,850. Zinc fell $2 to $1,023.
To contact the reporter responsible for this story: Matthew Craze in London at at [email protected].
To contact the editor responsible for this story: Stephen Farr at [email protected].
Last Updated: June 18, 2004 04:27 EDT
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