We could be heading for a major Nickel crisis.
I'll try my best to do a little more thorough update on Nickel and LME inventories this time... I'm of the belief Nickel is going higher as so many others on here also believe. We need to CLOSE above $9.50. We keep getting rejected there. Once we get through there we make a bee line into the 10's. Now here's the problem. If demand stays strong and we continue with a lack of supply, the nickel price will come up to test some major resistance around 27000 per ton roughly 12.5 ish and again around 14.5 ish roughly 31,000 per ton, where we have some peaks and troughs that have found either support or resistance. I'm looking at a 15 year chart so I'm focusing on major peaks and troughs. We have a cluster of them there. IF we get through there, then we have nothing but air until we hit the 2006 all time highs. Roughly 52,000 per ton or around $24. Keep in mind again, I'm talking major peaks and troughs. Not small ones in between. Anyone that looks at a chart can see what followed the 2006 spike... Now as far as the LME nickel inventories. They've dropped just in the last day by about 2.5%. We're now down to about 118,000 tons. That is now down over 55% I repeat 55% ( not a typo) from the April highs.I actually think we're about to make an all time low for nickel inventories. If this market doesn't balance itself some how, we'll be in a world of pain in the future. I've stated this before and I'll say it again. We need a realistic climb in the price of nickel in order for this to be sustainable. Or else we get a price shock that collapses everything. If CNC can get this mine up in time with all this nickel, maybe we could be a big part of the supply balance. Lol. With money in OUR pocket... Have a great night. GLTA