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MARKET TALK: LME Nickel Downside Limited After Xstrata Deal

Thursday, Feb 01, 2007
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LME nickel downside limited after Xstrata (XTA.LN) and union reach tentative agreement shortly before negotiation deadline, says broker. Nickel market very tight, with low LME inventory, strong nearby backwardation reflecting tight market. Nickel has initial support at $36,200-$36,300, with stronger support at $36,000. LME 3-month nickel at $37,000/ton, up $50 on Wednesday PM kerb, bid at $36,450.

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