A quick update on the world nickel market

Some new nickel fundamentals: The International Nickel Study Group is forecasting primary nickel consumption to increase 13.1% this year to 1.47 million metric tons slowing the 7.1% decline in 2007…the group is also forecasting record production of 1.54 million tons, suggesting a 70,000 metric ton surplus – well above some analysts projections…Societe Générale, however, is less than bullish over the near term as they, too, see nickel in surplus along with London Metal Exchange (LME) cash prices trending towards $20,000/metric ton ($9.07/lb). Macquarie is forecasting nickel to average $13.53 this year. (Editor’s Note: So far this year, LME spot nickel is averaging $13.06, down from $16.87 in 2007.)