MARKET TALK:Nickel Substitution Limited Despite High Price-NAB

Rising LME nickel prices carry little risk of substitution due to restricted capacity for replacing stainless steel additive, says National Bank of Australia analyst Gerard Burg. Says China infrastructure growth requires stainless steels with high nickel content as used in exposed applications; "it will be interesting to see to what an extent stainless steel producers can pass on higher costs." LME 3-month nickel hit record $50,000/ton Thursday; last at $49,400, unchanged on Thursday PM kerb.