We picked up a recent article from a publication produced by the London Metal Exchange. Analysts are bullish about nickel prices. Prices have bounced in the last quarter, and some firms, including Macquarie Bank, believe that nickel could be prone to more selling.  Some analysts, including those from Merrill Lynch, feel nickel has the most positive outlook in the base metals complex, with supply deficits for the next five years.

A rep from Inco, the world’s second largest producer, commented:

“Our customers are looking for more nickel and we are doing all we can to supply them, but it is difficult to meet all their demands. As we have suggested would happen, the nickel market is now in a place where the industry has never been before. This is creating, as expected, considerable volatility in prices as the market adapts to the new pricing levels,” said Inco’s Executive VP Marketing, Peter Goudie.

Source: the ringsider - London Metal Exchange November 3, 2006

http://www.lme.com/oct06-article1.asp