MARKET TALK: LME Nickel Unlikely To Have Peaked - CBA

LME nickel price unlikely to have peaked yet, may retain some upward momentum rest of week, regain $50,000/ton, says Commonwealth Bank of Australia. "The simple fact is that the supply environment is likely to remain tight in the near term, notwithstanding some evidence of substitution towards lower-nickel-content stainless steel." Notes, although prices should moderate later in year, long-term prices unlikely to fall sharply, as LME 27-month nickel well above long-run averages, demand from stainless steel consumers won't fall sharply because they drew down stock over past year and a half. LME 3-month nickel down $300 on London PM kerb at $48,100/ton.