GREY:FNKLF - Post by User
Post by
Triggermanon Sep 06, 2007 4:11pm
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Post# 13352815
Housing and FNI
Housing and FNI
Many probably wonder why nickel supplies continue to pour into
the LME week after week , driving the price down regularily.
A few pieces of key date came out over the last 3 days that help
to answer the question. (Foremost... big producers like xtrata and CVRD have been unloading their stockpiles for 3 months now...no end in sight).
#1 - US housing is in big trouble. Pending home sales dropped huge as per yesterdays release. Home foreclosures are hitting records , month after month and U.S. new home starts are dropping month after month.
#2 - Canada's housing market had not been effected like the
U.S. .... until this week. Those who follow overall market news and the currency market saw Canada release very negative housing details this week .... likely more to come. (For the record, I just sold my West-Sudbury home at what I believe is the short term peak of the housing market).
What does this mean? Simple.... less steel consumption , less stainless steel consumption , and greatly reduced nickel demand because so much of it was tied into home builds. And let's face it.... the US doesn't need to build anymore homes because they are sitting at record levels of vacant , foreclosed on homes that can't
be sold because US citizens are setting record bankruptsy levels.
Nickel is going below ten bucks and FNI is moving down to .60 .