MARKET TALK: LME Nickel May Rally to $35,000-$38,000

LME 3-month nickel last at $33,750/ton, +$50 vs London PM kerb in quiet trade, and could rally now that selling related to DJAIG index re-balancing over, says trader at major Japan firm, as upside rationale strong with LME stocks falling daily, cash to 3-month spread large; adds since nickel already at record highs, difficult to estimate extent of upside, but thinks $35,000-$38,000 possible.