MARKET TALK: LME Nickle Boosted By US Esconomu, Mkt Deficit

LME Nickel is seen underpinned by US economic conditions and a continued physical market deficit over the next two years, says Bart Melek, a senior enconomist at BMO Capital Markets. Nickel prices are at record highs on speculation that supply disruptions at Xstrata's Sudbury unit could "bleed inventories further," Melek notes. But given positive fundamentals, no significant correction is likely "even as Xtrata's labor issued are resolved," he adds. LME nickel trades last at $ 36,500 a metric ton, up from a kerb session close of $ 36,100/ton Friday.