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MARKET TALK: LME Nickel Resumes Uptrend; May Target $50,000

Friday, Mar 23, 2007
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LME 3-month nickel's overnight rebound after 3 days of losses confirms nickel still in uptrend, remains on track to break $50,000/ton, says trader at Japan house. Recent losses just short-term correction, fundamentals haven't changed, supply disruption risk higher as nickel shipments out of port Esperance in Western Australia may be suspended pending environmental investigation; adds volatility may rise as LME decision to increase initial margins will reduce trading volumes, less liquidity may exaggerate price moves. Nickel quoted down $1 at $45,149/ton on London PM kerb but untraded in Asia; metal gained $1,295 overnight.

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