Today's official LME nickel closing prices - cash - $22.39/lb -...

Today's official LME nickel closing prices - cash - $22.39/lb - 3 month buyer - $21.30/lb (41.06% higher than 1/1/07). The large gain of 504 tonnes of nickel into LME warehouses, that was recorded overnight, put the market on edge today, and prices slumped. While 3 month took the worst hit, what may give a slight ray of hope to stainless steel users, is the fact cash nickel fell below the $50,000 tonne level for the first time in a long while. It's official close today is the lowest since April 26th, and April 12th before that. The increase came the day after the industry respected newsletter Metals Insider, had advised readers that traders were looking to the Rotterdam warehouse for some decline. So when Rotterdam recorded the entire 504 tonne gain, it took many investors off-guard, and profit taking ensued. Some may call this a new correction, others may call it a slump. We, on the other hand, don't feel the last correction has played itself out yet. It will be hard for traders to hope to ever break thru the $50,000 tonne barrier again, when they have spent much of their time recently, eyeing it in the rear view mirror.