Nickel prices souringThe Globe and Mail reports in its Friday, March 4, edition that Inco and Falconbridge both rose Thursday, as the price of the nickel soared more than 4 per cent in London and a Canadian brokerage issued a bullish report on the commodity. The Globe's John Heinzl writes in the Market Moves column that Canaccord Capital Thursday raised its rating on Inco to "buy" from "hold" and boosted its target price to $47 (U.S.) from $38.75 (U.S.). Inco stock closed in New York Thursday at $41.63 (U.S.). Canaccord also raised Falconbridge to "buy" from "hold" and boosted its target to $40 (Canadian) from $36 (Canadian). Falconbridge closed at $35.68 (Canadian in Toronto Thursday. Canaccord projects that nickel prices will average $6.63 (U.S.) a pound in 2005, up from a previous forecast of $6.11 (U.S.) and an average price in 2004 of $6.30 (U.S.). It sees the price cooling to $5.75 (U.S.) a pound in 2006 and $4.65 (U.S.) in 2007. "Our favoured nickel producer is Inco due to its near-term production growth profile, declining costs and its trading liquidity," analysts Greg Barnes and Bonita To said. The analysts say Chinese nickel consumption is stronger than previously believed.