last approval close, page-2

ac,

Resistance at 30c seems to be still an issue, falls in nickel prices probably haven't helped either. But I belive the the BFS was produced on lower prices anyway.

Found this article which you may find interesting.


Sydney, March 17 (Dow Jones) - This month's tumble in nickel prices doesn't
mean the metal's bull trend is over, Australia's Macquarie Bank said in a
report Monday.
On the contrary, the bull market is just beginning, according to
Macquarie's demand and supply forecasts.
"The fundamentals tell us that the market is projected to be in (a)
large deficit for this year with that deficit growing in 2004 and 2005," even
with the assumption that Russia's Norilsk Nickel would sell 60,000 metric tons
of its stocks in 2003 and 2004, the report said.
Macquarie projects that the global nickel market will see a supply deficit
of 24,000 tons this year, stretching to 31,000 tons in 2004 and 32,000 tons in
2005.
Norilsk, the world's largest nickel producer, last year set aside 60,000
tons of stock as collateral for a three-year loan. It said then it wouldn't
offload this material for three years, "but no one believed that Norilsk had
not negotiated a get-out clause in the deal," Macquarie said.
Since March 4, nickel stocks in London Metal Exchange-registered warehouses
have risen, reversing a steady fall in stocks this year, leading some in the
market to speculate that Norilsk has started to offload part of its
collateral, said Macquarie.
Nickel stocks, as of Friday, stood at 17,778 tons, up 4,800 tons from March
4.
In turn, the three-month LME nickel contract hit a six-week low of
US$8,080/ton Friday, from US$9,130/ton Feb. 26, also the highest since
June 2000.
At 0246 GMT Monday, the contract was quoted at US$8,170/ton.
"If it is the Russian material, and we must emphasize there has been no
confirmation of this, then this has created the considerable uncertainty of
how much of the 60,000 tons will come out in the short run," Macquarie said.
"If it is not the Norilsk material, then it places into doubt the recent
assertions by Inco and others that the physical market is chronically tight,"
it added, referring to Canada's Inco Ltd., one of the world's largest nickel
producers.
Based on its demand and supply forecasts, Macquarie projects that the LME
cash nickel price will average US$3.85 a pound this year, rising to US$4.50/lb
in 2004 and US$5.00/lb in 2005.
Even if the recent stock builds are due to Norilsk's stock liquidation,
Macquarie assured that these stocks are needed and "will be quickly mopped up."
Thus, the timing of any Norilsk stock release won't change the forecasts
of higher nickel prices over the next three years, Macquarie said.

---
Wong Chia Peck, Dow Jones Newswires, 612-8235-2957
[email protected]
Copyright 2003 OsterDowJones Commodity News (ODJ). All rights reserved.

FSN40145 CM METALS
2003-03-17 03:08:55 UTC
^^^^^^