Stainless Steel Prices & Nickel News, Archived Feb 2007, Metals Market News

This page is archived news covering the period of February 2007
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Stainless Steel News & Nickel Prices

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February 2007

(Nickel prices are responsible for approx. 60% of the cost of stainless steel - see bottom for more)
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	Wednesday, Feb 28 Andalusia Day in Spain, Peace Memorial Day in Taiwan
	Today's official LME nickel closing prices - cash - $20.14/lb - 3 month buyer - $18.55/lb. So, did someone wake up the bear from his four year sleep today? Not hardly! While nickel did finally get caught up in the decline in yesterday's stock markets, it is merely another dip in the middle of a mountain range. And the GPS map is showing no serious valley's nearby. Nickel started this year, a mere two months ago, at $15.10/lb. And it started 2006 at $6.18/lb. So while today's closing may be a tad less than yesterday's, the market will have to get caught in a rock-slide before investors should get nervous, or nickel/stainless buyers can afford to get their hopes up. The bears will remain in hibernation, and investors will pocket their profits, or lick their wounds, and antey up again for tomorrow. Today, 3 month nickel ended at $18.77/lb ($41,390/tonne). (more) (more) JP Morgan to invest in Philippines mining sector - "US investment bank JP Morgan said Wednesday it is looking to finance major international mining companies that are expected to invest in the Philippines' reviving mining sector." - article here No Concrete Triggers Found for Chinese Stock Market "Black Tuesday" - "The Chinese stock market plunged almost 9% yesterday, which was the largest fall in a decade, and local media are now referring to the day as "Black Tuesday." However, securities analysts have found no concrete triggers for the slump so far." - article here High nickel price could damage demand - "THE fundamentals for the stainless steel industry remain strong, but the very high price for key ingredient nickel could prove to be a rationing factor in the sector, said LionOre CEO Colin Steyn." - article here OSHA revises standards on hexavalent chromium - "The Occupational Safety and Health Administration (OSHA) released at the end of October 2006 a revised standard that governs regulation of employee exposure to hexavalent chromium." - article here Chinese Stock Dive Buries Mining Stocks - "Mining companies such as BHP Billiton, Rio Tinto Group, and Anglo-American have scored bumper profits in recent years thanks to China's seemingly insatiable demand for copper, nickel, and other metals." - article here Stainless Basic Prices Under Pressure as Alloy Surcharges Soar - report here Norilsk Nickel to recoup OMG investment in 12 mths - Prokhorov - "MMC Norilsk Nickel expects to recoup what it invests in the acquisition of the nickel-related assets of the OM Group in a year, a press report in the city of Norilsk said, quoting Mikhail Prokhorov, the Arctic mining and smelting giant's co-owner and general director." - more here At 9:30 am CST, indications show nickel is selling down by $.29/lb . In fact, all base and precious meals are down at this hour. Here is a round-up of all the world's major stock markets - here Metals Insider - Week in Review - here Spain's Acerinox 2006 net profit beats f'casts - "Spanish stainless steel maker Acerinox on Wednesday reported a 226 percent rise in net profit, beating forecasts, after a strong recovery in world stainless steel prices in the second half." - article here More articles about yesterday and today's market - "China casts shadow over commodities" - article here - "Miners walloped in record fall" - article here - "Chinese stocks recover, while Europe, other Asian markets still struggle" - article here - "Chinese Stock Dive Buries Mining Stocks" - article here Iron ore exports seen dented by new duty - (from article) - "Chidambaram added that an export duty of Rs 2,000 per metric tonne had been imposed on chromium ores and concentrates, which are used in making stainless steel.India's total iron ore reserves are estimated at about 23 billion tonnes." - more here and "FM's levy of export duty on ore leaves miners sulking" - article here Indications at 7:45 am CST show nickel selling down by $.35/lb . Overnight stock markets in Shanghai recovered nearly 1/2 of their losses from the day before, and it will be interesting to see if other markets follow suit today. Does anyone remember the crash of '87? Notice any similarities? The brand new Fed chairman Greenspan opens his mouth, China panics because of something he says, the rest of the world plays follow the leader? We have a brand new Fed chairman again, but he isn't scheduled to talk until this afternoon. So who opened their mouth this time? Could it be the supposedly retired Greenspan. Ok, admittedly there are some big differences, but we could swear we have been down this road before. Most of the pundits and pontificators being interviewed over the last 24 hours, that we have watched, agree on one thing. The market has strong fundamentals and this is no more than a simple correction. Nickel appears to have finally buckled under the pressure, with some deciding to take their profits. If you purchase nickel or stainless steel, there is no reason to start the party though. The rocks that make up the stainless are still in short supply, and today's dip is probably no more than the normal up and down seen in a typical give and take market (more) Behre Dolbear Global Mining News - pdf here Buoyancy in commodities market to continue - "The buoyancy in the commodity markets is expected to continue in 2007-08, witnessing larger volume and value of commodities traded, according to the Economic Survey 2006-07 released on Tuesday." - article here Metals go on correction mode - "After a sustained rally, metals basket showed early signs of a correction on Tuesday. Market analysts, however, believe that any such correction would be short-lived. The entire basket - especially precious metals - is enjoying a positive bias both technically and fundamentally" - article here Investors Don't Dig U.S. Mining Stocks - "Metals and mining stocks crumbled in Tuesday afternoon trading in New York, as the aftershock of the Chinese stock market earthquake shook investors' resolve." - article here NMCE launches new series for futures trade in base metals - "Futures trading in new series of aluminum, copper, lead, nickel, tin and zinc would begin on March one at the National Multi-Commodity Exchange (NMCE)." - article here Prony Energies, the power station built by of Calédoniens - "Whereas the building site approaches its last months, zoom on a local company, to which was entrusted the construction of this gigantic project. " - translated article here (Goro related) Xstrata Nickel and USW Local 2020 Reach Tentative Collective Agreement - "Xstrata Nickel announced today that the company's Sudbury operation has reached a tentative agreement for a new Collective Agreement with USW-Local 2020, Unit 6855, which represents Xstrata Nickel's Office, Clerical and Technical (OCT) employees. There are approximately 200 employees in the bargaining unit. The prior agreement expired on February 28, 2007." - more here and another Today's beginning nickel inventory - plus 12 tons = 3,294 tonnes (42.99% cancelled warrants)

	Tuesday, Feb 27 Dominican Republic Independence Day
	Today's official LME nickel closing - cash - $20.18/lb - 3 month buyer - $18.64/lb. While mining companies felt the pinch of the "stock correction" witnessed today, nickel and tin rode out the storm and finished higher. Greenspan's remarks in Hong Kong yesterday, along with the Chinese government taking new measures to slow that country's market, spooked the Asian markets into the biggest one day drop in a decade, with other world markets following. Bloomberg reported the sell-off wiped $107.8-billion (U.S.) in value from the Chinese market alone. A dismal US durable goods report released early this morning also added some fuel to profit takers fire, and some felt the explosion from a suicide bomber near the visiting US Vice President in Afghanistan, also shook some traders But nickel inventories, stocked in LME warehouses, fell overnight by over 6%, and traders of nickel held their cards close to their chests today and raised the stakes. Will they raise, hold, or fold tomorrow? We will have to wait to see, but today's 3 month nickel ended at $18.90/lb ($41,650/tonne) (more) Europe mulls: Is China the start of something big? - " A massive sell-off in Chinese stocks overnight took its toll on European equity markets on Tuesday, with investors wondering if this move could signal the start of a broader correction." - article here Some potential good news on the horizon for nickel and stainless steel buyers. In a news release on Friday, FNX Mining of Canada announced "Production plans call for a 42% increase in ore production in 2007 to 900,000 tons producing 12.7 million pounds of payable nickel,.... Most of the increase in 2007 production comes from the growing contributions from the nickel-rich ore at the (recently re-opened) Levack Mine." - more here Japan's Sumitomo Metal nickel demand in China will grow 20% - "2006 nickel output has increased from 1.31 million tons to 1.36 million tons. However, due to the large demand in Asia, plans to increase sales this year by 10,000 tons to 1.37 million tons. Sumitomo Metal ores : "China needs the impact of the Asian region will be driven by consumption growth. "Sumitomo Metal mining official said : MB "China's demand for nickel has grown by 20% compared with the past few years, and we expect This data will be maintained in 2007." - translated article here Not nickel or stainless related - Alcoa CEO received $10 million in 2006 - "Alcoa Inc. Chief Executive Alain Belda, who led the aluminum maker through a year that saw revenues and operating income reach record levels, was awarded $10 million in total compensation in 2006, according to a company proxy statement filed Monday." - article here Metals - Base metals dip after strong gains; Chinese stock mkt dive weighs - "Base metals prices were lower as the market consolidated following recent strong gains and as the shock slide in the Chinese stock market sparked worries over near-term demand growth." - article here Quote from press release "Scotiabank Commodity Price Index retreats in January, as investment funds take profits in base metals" - "our expectations for a nickel 'super-cycle' also remain intact." - more here Nickel and stock price forecasts raised by Desjardins - "While a major decline in the Chinese Stock Market on Tuesday put pressure on metal prices given the country’s huge consumption, Beijing is likely trying to slow down its economy, not halt it altogether." - article here (and our list of all updated forecasts here) Kremlin Inc. To Grab Billionaire's Nickel Giant? - "Vladimir Potanin, chairman of nickel giant Norilsk Nickel, is considered one of the last remaining billionaire oligarchs of Russian's Yeltsin era -- but not for long. It looks as though the 45-year-old could soon find himself plucked from power by the acquisitive hand of the Kremlin." - article here Indications at 7:55 am CST show nickel selling down by $.09/lb . With former Fed chairman Greenspan stating the obvious, and telling a Hong Kong conference, a US recession was "possible", markets worldwide took a break from recent record gains, and paused to determine if he was hinting at something, or if he should return to enjoying his retirement in silence. Traders on the London Metal Exchange were no different, and will be watching US indicators being released over the next few days to determine just "how" possible a recession might be. In the next few days, the US market will see the release on new and existing home sales data , a revision in the 4th quarter of the GDP, and on Thursday industrial production data and jobless claims will be released. Stay tuned. Could be a bumpy little road this week. (more) (more) (more) Allegheny Ludlum Raw Materials Update - pdf here Rand Merchant Bank Base Metal Reports - pdf here Institute of Scrap Recycling Industries, Inc. - Monday's Market Report - pdf here Canada Commodity Price Update - pdf here Commodity prices weather equity market slump - "Commodity prices were relatively immune from the large sell-off in equity markets triggered by fears of overvaluation and tensions between Iran and the US over the Islamic republic’s nuclear ambitions." - article here Asian Stocks Rise to Record for Third Day; Nikko Cordial Surges - "Asian stocks climbed to a record for a third day, led by commodity-related companies after prices of metals and oil rose." - article here OMG nickel business to boost Norilsk's production: Morgan - "Norilsk Nickel's acquisition of the nickel business of US specialty chemical company OM Group will help the Russian producer to increase nickel production, a senior official told a meeting of analysts in Florida Monday." - article here Scotiabank Commodity Price Index - pdf here Upturn in MEPS Global Steel Prices as Major Exporters Raise Offers - "At the end of January, Nucor in the US announced plans to put up strip mill transaction prices by $US20 per ton, effective with March shipments, due to "escalating costs and strengthening market conditions". Although we have noted some price improvement for hot rolled coil, customers are resisting paying more for cold rolled and coated steel. In general, although inventories at service centres are still high, they are getting closer to the desired level. Import offers are minimal." - MEPS report here The SLN pinned by the Northern province with Népoui - "The Northern province put the SLN in residence to proceed to a setting to the standards of its industrial facilities to Népoui. Aimed by this procedure: the machine shop and, especially, the laundry of Bernheim." - translated article here Mining firm says extraction limit changed - "A mining firm operating in Palawan said yesterday it can’t afford to extract nickel beyond the limitations set by the government." - article here BHP Billiton to invest $5,2m for 50% stake in Burundi nickel prospect - "The world's largest diversified miner, BHP Billiton, has agreed to spend $5,2-million on exploration on Dwyka Diamonds' Muremera nickel project, in Burundi, to earn a 50% stake in Danyland, Dwyka's wholly-owned subsidiary in the central African state, the junior miner said on Monday." - article here Cuba's trade booms with China and Venezuela - "Cuba's trade with China more than doubled in 2006 to nearly $1.8 billion, the Chinese customs office said on Monday, as the Communist-run island prioritized its new revolutionary partners China and Venezuela." - article here Oil and metals mark sharp upturn amid Iran tensions - "Oil and metals continued to surge Monday amid heightened global political tensions and mounting fears that demand for metals will outstrip supply." - article here Joint-venture with New Zealand kicks off nickel mining - "The Knight Piesald company from New Zealand has entered into a 35 million USD joint venture with a local partner to dig into nickel ores in the northern mountainous province of Son La." - more here Today's beginning nickel inventory - minus 228 tons = 3,282 tonnes (40.22% cancelled warrants)

	Monday, Feb 26 Liberation Day in Kuwait
	Today's official LME nickel closing - cash - $20.00/lb - 3 month buyer - $18.63/lb. Following an optimistic ending last week, in anticipation of the return of the Chinese to the world market, traders entered today's trading with news that cancelled warrants had grown, overshadowing a small gain in physical inventory. It was kind of like someone pouring in a shot glass of water into a bucket, while someone else reserved a coffee cup full. If there was a lot of water in the bucket, it wouldn't matter much. But the water level in this particular bucket has been low for a very long time and forecasters aren't calling for rain anytime soon. With that in mind, trading of 3 month nickel ended the day at $18.73/lb ($41,300/tonne). (more) Scrap and metals theft problem moving from court houses to state legislative houses - articles here and here and here The Year For Metals - "2006 was a great year for metals though very few things (except uranium) went straight up. Most commodities had larger price swings than the year on year numbers (impressive though they are) indicate. We don’t expect a repeat of that scenario for most metals in 2007. Price movements should be more muted than last year, and more individual, based on how balanced each metal’s supply-demand picture is." - article here (Comment - Got a lazy brother-in-law living on your couch? Print this for him) - Mining companies offer big money and benefits to cope with a dire shortage of workers - "Every time Sue Gogilis starts her shift driving the company truck, she gives her steering wheel a good rub with a few disinfectant wipes. Gogilis, 34, a mother of two, was a dental assistant until last May. Now she drives a mammoth dump truck at one of Rio Tinto's iron ore mines, hauling 230 tons of rock and dirt across the scorching Pilbara region in Australia's outback." - article here Brazil CVRD buys Australian AMCI coal miner - "Brazil's CVRD, the world's biggest iron ore miner, said on Monday that it bought Australia's AMCI Holdings in a deal worth a total of 835 million Australian dollars ($739 million)." - article here Norilsk sees 2006 net profit, dividend up -report - "The world's top nickel and palladium producer Norilsk Nickel may post a net profit made to International Financial Reporting Standards of $5 billion for 2006, Norilsk was quoted as saying on Monday." - article here National Australia Bank - Base Metals Monthly - pdf here Indications at 8:00 am CST show nickel is selling up by $.06/lb . Since Friday's trading ended at a record high, any gain today, will be in new record territory. The Chinese have returned to the market, and it will be interesting to see if their inventories of nickel are at "must buy" levels yet, as some suspect they are. (more) Nickel reaches record high - "Nickel hit a new record high Monday on worries about supplies, while aluminum rose to its best level since last May and copper held firm on expectations of stronger demand from Asia." - article here Institute of Scrap Recycling Industries, Inc.- Market Report - pdf here Jyske Bank Commodities Morning Briefing - pdf here Sumitomo eyes $380-M nickel facility in RP - "Japan's Sumitomo Metal Mining Co Ltd is planning to build a $380-million nickel processing facility in Surigao, officials of the Department of Environment and Natural Resources said." - article here Profit of China's steel industry hits historical high - "China's iron and steel industry reaped record profit of 169.95 billion yuan (22 billion U.S. dollars) in 2006, rocketing more than 30 percent year on year, figures from the China Iron and Steel Industry Association show." - article here Blow of inch for the Korean project of the SMSP - "While exonerating the actors calédoniens nickel of the tax applied to certain appreciations, the government comes to soften considerably its position with respect to the project of the SMSP to build a factory in South Korea. Explanations." - translated article here Today's beginning nickel inventory - plus 18 tons = 3,510tonnes (46.32% cancelled warrants)

	Saturday, Sunday Feb 24-25
	Market amid bull run; focus on mining issues - (from article) "The Securities and Exchange Commission, in a move to protect the investors during a bull market and ensure the market's upward momentum, is reportedly evaluating the disclosures of listed companies, whose share prices have risen significantly, to determine if they are accurate and factual." - more here Information is power and for many companies in the metals industry, that information comes with a fee attached. Since this site is free, we only link to information/articles that has been made available to the public, without fee, or submitted to this site for publication to its readers. If you ever find one of our links leading to an article that has suddenly become available only to paid subscribers, please let us know, and we will remove it. We are also one of the few places offering free information, that attempts to comply with the copyright laws. If we see something that is subscriber based that we would like to make available to our readers, if we wait long enough, someone, somewhere will usually copy it and put it on a blog or a metals site. And while we won't 'borrow' copyrighted material ourselves, we might link to it, when we find it posted somewhere else. For instance, did you miss buying the report from Lehman Brothers January 2007 "Metals & Mining Monthly". If so, someone has posted it free (here). That said, there was an interesting article published on a password protected site that we found on an Australian blog today. Dated February 6, and titled "Talk Of Nickel Substitution Can Be Dismissed" minesite.com interviews Peter Johnston, who is now chief executive of the Australian nickel producer, Minara Resources. Makes interesting reading and the article can be found at the bottom of this page - (here) (for anyone considering switching to 201 stainless steel, please read this) We get a lot of questions about how the LME operates, and it can be very confusing to explain. So we have added two permanent links to the bottom of this page to help answer some of the more common questions. We have added "The ABC’s of a Metals Exchange" a presentation given in 2001 by James Eggins of WMC - pdf here and "A Guide to LME Data Trading of LME futures and options contracts" - pdf here and a common question from non-traders - what's the difference between selling short and selling long? - courtesy XpressTrade - "For those willing to incur the risk, you can profit from trading LME Metal Futures the same way as any other investment - by buying low and selling high. One difference with futures, however, is that it's just as common to sell "short" - to sell first, in other words - and then buy back later as it is to buy first, or "go long." With futures trading, if you think prices are going up, you simply establish a "long" (buy) position. If you think prices are going down, you initiate a "short" (sell) position." Palace reverses DENR on Palawan nickel mines - "Malacañang has given the Platinum Group Metals Corp. (PGMC) the green light to resume its mining operations in Palawan six months after it was stopped by the Department of Environment and Natural Resources." - Article here Blurb from a Dow Jones Newswire story on Friday - " Traders said that although profit-taking could create a near-term pullback in nickel prices, the supply-demand balance means further rises are likely next week." Scrap Magazine Market Week in Review - pdf here Indonesian prosecutors reject Newmont defence case - "Indonesian prosecutors told a court on Friday in a high-profile pollution trial that the local unit of Newmont Mining Corp. dumped mining tailings in the sea without proper documents." - article here Arcelor, Mittal Sign Deals With Senegal - "Arcelor SA and Mittal Steel Co. NV, which have agreed on a deal to form the world's largest steelmaker, said Friday they have signed agreements worth $2.2 billion (euro1.68 billion) with the government of Senegal to mine iron ore in the West African nation." - article here and another article Got my copy of "Mine Your Own Business" last week. If you don't have a copy, and are interested in the mining industry, you need to see it. It is quite an eye-opener. Here area few links for you. First, the official movie site, with movie trailer, and how to order. (Official site here) Second a report by another video journalist about a confrontation between NGO's and the director - video here and a debate between the director and a NGO spokesman on Fox - here and a report on Fox here Mining bill likely to be passed next month - "The hopes of mining firms for major changes to the draft mining law appear to have been dashed after the House of Representatives decided to keep a number of controversial chapter unchanged." - article here Xstrata's Sudbury office staff OK strike mandate - "Unionized office, technical and clerical staff at Xstrata Plc's nickel operations in Sudbury, Ontario, have voted in favor of giving their union a mandate to strike should it reject a new labor contract offer from the company." - article here Mining company profit soars on Cuba nickel output - "Sherritt International Corp., a miner of nickel in Cuba, said fourth-quarter profit rose more than eightfold to a record because of surging metals prices." - article here Not only gold – base metals and uranium surging too - "What a week for metals commodity investors! This week has seen a big upturn in all the major traded commodities – even copper has pulled back dramatically from the recent slump which looks to have been overdone, while new records have been set for nickel, lead and uranium. The effect on commodity mining stocks has also been dramatic with gains on major exchange indexes again being commodity-led. Precious metals too, of course, have been strong with the gold price breaking through $680 again and silver through $14.50. Where will it all end?" - article here Countering terror in Poso - this pdf newsletter contains an article (on page 7) about the terrorist movement on Sulawesi, Indonesia (where many of the nations nickel mines are) - pdf here PRRM Conrado Benitez Institute for Sustainability has a report on their website from 2005 - while old, it does provide some good basic information about mining in the Philippines - pdf here or you can read it online here InfoMine's Jack Caldwell has a personal blog called 'I Think Mining' here and InfoMine has a good page on "Mining Ethics" here

	Friday, Feb 23 Republic Day in Guyana, Fatherland Defender Day in Russia
	Today's official closing LME nickel prices - cash - $19.60/lb - 3 month buyer - $18.09/lb. While closing prices are determined around noon London time, this left the afternoon for movement either way. And move it did! Nearly across the board, commodities got a lot of fund interest, and investment, today. Nickel was no exception, except that it reached a new all time record high. 3 month nickel ended the day and week at $18.51/lb ($40,800/tonne). Next week should prove to be interesting, with eyes turned to the Far East, to see when China will start buying, and how much they purchase. We wish you all a safe and relaxing weekend. (more) (more) Sherritt sees growth in Cuba - "Sherritt International Corp. (TSX: S) said Friday it expects growth to come this year through expansion of its power and metals mining projects in Cuba as well as coal projects in Canada, after doubling its full year earnings." - article here and Reuters "Sherritt profit soars on commodity prices, output" article here CVRD Inco to continue JV to explore Ni properties - "Nickel miner CVRD Inco plans to continue a deal to explore for nickel sulfides at Australian Mirabela Nickel's Santa Rita and Palestina areas in Brazil's Bahia state, Mirabela said in a statement." - article here Philippines says BHP to invest up to $1.5 bln - "The world's biggest miner, BHP Billiton, may invest up to $1.5 billion in a nickel project in the Philippines, the government said on Friday as it tries to revive hopes of a take-off in its metals sector." - article here Stainless steel prices hurting biofuels? - Biofuels Summit Set For Feb. 28 in Des Moines - "On Wednesday Feb. 28 in Des Moines at the Polk County Convention Complex the Iowa Renewable Fuels Association will hold a Renewable Fuels Summit. "This meeting going to cover where the industry is at and where we think it is going," says Monte Shaw, executive director of the IRFA. "We have a lot of exciting information to present." - article here Jaguar Nickel to move from mining to merchant banking, mesh with new board - "Jaguar Nickel Inc. (TSX:JNI) will shift its focus from mineral exploration to merchant banking after electing a board with a background in the investments industry, the company said Friday." - article here Making Money With Metals - "Once an investing idea becomes popular, Wall Street tends to jump on the bandwagon to give the public new methods of access to the latest fad. An explosion of new products follows, with financial institutions trying to cash in on all of the interest in the hot investment while it lasts." - article here Nickel closest thing to a true ‘war metal’ - "Sudbury was definitely going to be “nuked” by the Russians. At least that was our conclusion back in 1976 when I worked at CVRD Inco’s Clarabell Mill for a year." - article here The Wall Street Journal had an interesting article yesterday about mining called "Even Now, Big Miners Dig Away" - if you didn't see it, Mann Financial has a copy attched to the bottom of their daily report (found in our left column) - link here Indications at 8:00 am CST show nickel trading higher this morning by $.30/lb . With much of China returning to work next week, it appears the market is betting they will be in a buying mood. There were some indications in the early part of the month that some in the Chinese market were holding off buying nickel until after the holidays, in the hopes the price would go down. That has proven to be a bad gamble so far, with only 1/2 day's trading left and prices up. If Chinese buyers did in fact let their inventories slip, then betting they will need to buy next week, appears to be a safe bet. Damstahl Stainless Steel Bi-Monthly Report - pdf here New commodity bull run tipped as metals advance - "Industrial metals gained ground in London and New York Thursday as demand increased amid fears of supply shortfalls, giving rise to suggestions that another commodity rally is around the corner." - article here Prices to put commodities in India budget spotlight - "With newspapers splashing food prices across front pages, India may seek to tackle rising inflation in next week's budget by further cutting duties on edible oils and extending a window for duty-free wheat imports." - article here POSCO to raise stainless steel prices - "POSCO Co Ltd, the world No 3 steel maker, will raise prices of stainless steel products by 240,000 won ($255.7) per tonne, or some 6 percent to reflect soaring nickel prices, a company official said on Friday." - article here Miners in forest areas to be required to pay up-front compensation - "In the latest effort to improve protection of the country's rain forests, the government will require mining firms operating in both plantation and protected forests to make an up-front compensation payment for the destruction of forest cover and to cover any environmental damage their activities might cause." - article here and more in depth article here BHP Billiton May Invest Up To $1.5 Bln In Philippine Mining - "Mining company BHP Billiton Ltd. (BHP) is expected to invest $800 million to $1.5 billion in Philippine mining, including a nickel processing plant, environment secretary Angelo Reyes told reporters Friday." - article here (more) Acesita sees positive stainless steel scenario in Q1 - "Brazilian specialty steel producer Acesita is optimistic about the stainless steel market scenario in the first quarter of 2007, following "quite" favorable market conditions last year, the company said." - article here and "Brazilian stainless steel consumption rose 18.8% last year to 268,072t compared to 225,597t in 2005, a spokesperson with the country's stainless steel development association NÃºcleo Inox told BNamericas." - article here Rio May Spend $2 Billion on Indonesian Nickel Project - "Rio Tinto Group, the world's third- largest mining company, may invest $2 billion, double an earlier estimate, developing its first nickel project in Indonesia to meet rising demand driven by steelmakers in China." - article here and another article here Sherritt Reports Record Earnings in 2006 - report here article here Kabanga under the microscope - "Toronto’s XSTRATA NICKEL and BARRICK GOLD have begun a prefeasibility study of their joint Kabanga nickel project. The property is located in northwest Tanzania, south of Lake Victoria and near the borders with Burundi and Rwanda." - article here Iron ore reserves must be preserved - "Sajjan Jindal, vice-chairman and managing director, JWS Steels, on Thursday said that according to a study, going by the present rate of iron ore exports, reserves of the ore would be exhausted in nineteen to twenty years even if exports were stopped immediately." - article here Today's beginning nickel inventory - plus 42 tons = 3,492tonnes (34.71% cancelled warrants)

	Thursday, Feb 22 People's Power Day in the Philippines, Unity Day in Syria, Independence Day in St Lucia, and GW's birthday in the US - no, George Washington's
	Today's official LME nickel closing - cash - $19.32/lb - 3 month buyer - $17.96/lb. With no clear direction, some traders chose to take their profits. The lingering question of falling inventories, kept the retreat of the day in check. 3 month nickel ended the day at $17.64/lb ($38,900/tonne) (or $1.21/troy ounce). (more) Steel, coal, base metal prices down but not out: S&P - "Ratings Agency Standard & Poor's said Thursday that steel prices, although on the decline, are still high by historical standards, while coal prices are likely to stay at a level beneficial to credit quality, except for coal mined in the Central Appalachian region, where costs are high and operating conditions difficult." - article here if you are interested in reading the S&P report "Metals & Mining: Prices: Down, But Not Out" - you can read the report here (you must register, but it's fast and free) In case you missed it last weekend, we provide some research on Skye Resources and the Fenix Nickel project in Guatemala (what the NGO's aren't telling you) here Indications at 7:45 am CST, show nickel selling down by $.07/lb. It's a stand off so far today, with the profit takers being held in check by another large loss in LME nickel inventories. If it breaks today, which direction it takes, and to what degree, has yet to be determined. (more) Extra - In our continued mission to bring you first rate and timely information worthy of the expense we charge for this service, we asked the Assistant Controller and Financial Analyst from Universal Stainless of Aurora, Colorado, for an in depth forecast of future worldwide nickel prices. Based on his years of training and expertise in 'econometrics', Burns Searfoss gave us this annual nickel price forecast for 2007. - "The price of nickel is going up, unless it goes down, otherwise it will stay the same"......We just hope you are as glad you didn't have to pay for this forecast, as we are that we didn't pay for it either. (note - if you are curious, Mr Searfoss did want to remind us that at $19.36/lb yesterday for the official cash closing, nickel is worth $1.33/troy ounce. We thank him for allowing us to use his forecast and his "precious metals" update.) The Year of the Pig and the Coming Trip to the Slaughterhouse - "While the Chinese celebrate the year of the pig, the “Don’t Worry, Be Happy” crowd on Wall Street are fattening up their piglets with “Goldilocks “economic forecasts despite storm clouds on the horizon. TOUT-TV (CNBC-TV) continues to do its part in getting the piglets ready for the trip to the slaughterhouse even though the announced new FOX Business Channel may become reality in time to save some from becoming bacon." - opinion here Norilsk Nickel Gets 5-Yr $450M Revolving Credit Facility - "The loan was arranged by units of Barclays PLC , ING Groep and Societe Generale SA." - article here Goro Nickel: Mapou and Wamytan show the State of ecological complicity of disaster - "Raphaël Mapou and Rock Wamytan showed the State to be the “active accomplice of an ecological disaster” concerning the project Goro Nickel, that Domenica Voynet described as “cynical caricature of violation of the right”." - translated article here Indonesia agrees with Rio Tinto on mine contract - "Indonesia hopes to sign a contract with mining giant Rio Tinto Plc to develop an around $2 billion nickel project around the middle of March, the head of the state investment agency said on Thursday." - article here and another yet Rio denies an agreement has been reached - article here Dow Jones Newswire blurb - "Stronger than expected economic growth in Japan and Europe drives stainless steel production and strong nickel demand, says Bart Melek of BMO." Crude Steel Output to Reach 460m Tons This Year - "China expects to produce approximately 460 million tons of crude steel this year, a steady growth of 10 percent over last year, according to the National Development and Reform Commission." - article here and another Producers, Consumers Alike Feel The Nickel Price Bite - "Record high nickel prices are starting to become problematic for producers and consumers alike, with the former facing credit issues and the latter being priced out of the market, analysts say." - article here World Bureau of Metal Statistics report issued Wednesday - Global nickel market experienced a deficit of 50,000 tons in 2006. 2006 mine production - increased 4.5% over 2005 to 1.409 million tons. Refined production - up 2.4% over 2005 with increases in output from Indonesia and Canada offsetting losses in Oceania. Demand for nickel - 78,000 tons higher than 2005. Today's beginning nickel inventory - minus 480 tons = 3,450 tonnes (45.74% cancelled warrants)

	Wednesday, Feb 21 Ash Wednesday
	Today's official nickel closing prices - cash - $19.36/lb - 3 month buyer - $17.91/lb. The reported LME nickel inventory loss spooked the market again today, driving early morning prices to a new record high. Having reached this new peak, profit taking forced the price into a short retreat. It then spent the rest of the day bouncing back and forth, never quite reaching where it had started the day. It ended the day at $17.92/lb ($39,500/tonne). (more) (more) China’s Consumption Doesn’t Ensure a Continued Commodity Bull Market - "The market has knocked the stuffing out of many commodities of late." - more here EU Slaps Fine Against 5 Elevator Makers - "European Union regulators slapped their largest price-fixing fine ever - euro992 million (US$1.3 billion) - on five elevator makers Wednesday for operating cartels for the installation and maintenance of lifts and escalators in Germany, Belgium, Luxembourg and the Netherlands."(stainless related) - article here Ramu Nico begins to construct site facilities - "A FOLLOW-UP inspection of the Basamuk campsite showed that China-based Ramu Nico Management Ltd and contractor ENFI PNG Ltd have already started putting up workers’ facilities as imposed by the Labour Department." - article here Indonesian Mining law must provide certainty and equality - "Major mining companies versus junior mining companies -- there is a difference of opinion on how the current Indonesian mining law should progress, but both agree there needs to be two separate laws: one to allow long-life large-scale projects to proceed and one law for smaller projects." - more here Quote from Reuters report - ""Nickel is a very simple story -- all the disruptions to new projects have delayed a fresh wave of production," Gerard Burg, minerals and energy economist at National Australia Bank said. * "Demand for stainless steel remains strong and if stock levels continue to fall, there is potential for even higher prices. We are forecasting $35,000 a tonne for the year and there is every possibility that we are being pessimistic." At 7:55 am CST, indications were nickel was selling down by $.20/lb . LME nickel earlier today hit a new record high at $18.25/lb, the first time 3 month nickel has ever traded over $40,000/tonne. But profit takers decided to cash in after this new historical milestone was reached. With the rather dramatic drop in nickel inventories overnight, it is doubtful we will see any bears come out of hibernation anytime soon. (except for those who have been forecasting for 3 years now that nickel is going to fall. Someday, my friends - they will finally be able to say "we told you so". But not today.) (more) Reuters Metal Weekly - pdf here Quote from Asia Pulse Pte Ltd in Hoover's report - "The Indonesian Resources Company (IRC) has finished a feasibility study on merger of PT Aneka Tambang, which operates nickel, gold, and silver mines and coal mining company PT Tambang Batubara Bukit Asam and tin mining company PT Timah." Nickel/copper prices fluctuate - "The price of nickel and copper have undergone great changes this year compared to last year, BCL mine's General Manager Montwedi Mphathi has revealed. " - article here SL scrap metal export rules hit Indian units - "Sri Lanka's exports of scrap copper and other metals to India have been hit by wider security moves taken by the island nation as it tries to stop shipments of material that may be used in weapons." - more here Anglo American profit up 46 pct, to return $3 bln - "Anglo American Plc, the world's third-largest miner, said on Wednesday it would return $3 billion to investors as it posted a 46 percent rise in annual net profit, below the average forecast." - more here Followup - Russia imposes 3-year duties on European Union stainless steel - extended - "Russia, the world's fourth-largest steel producer, will impose three-year duties on stainless steel imports from the European Union to protect domestic producers from what it called dumping." - article here Specialty Metals Industry Group Releases Eleven-Month Market Data - pdf here or "Global crude steel production up 13.5% on January 2006: IISI" - Platts article here Kanak Group Warns of Action over New Caledonia Nickel Project - "A New Caledonian Kanak group has warned of tough action against the territory's multi-billion dollar Goro Nickel project." - article here Today's beginning nickel inventory - minus 468 tons = 3,930 tonnes (47.49% cancelled warrants)

	Tuesday, Feb 20 Carnival / Mardi Gras in much of South and Central America
	Today's official LME nickel closing prices - cash - $19.44/lb - 3 month buyer - $18.05/lb. So, who were the idiots that said yesterday they saw very little chance of major movement in the nickel market this week? Oh yeah, that would have been us. If you have ever wondered what a bull on steroids acts like, just watch this nickel market closely. Today's market headed up shortly after the bell, and never looked back. Nickel closed at $18.05/lb ($39,800/tonne) (more) (more) Amazing what a 36 ton inventory decrease, a 2 point cancellation rate increase, and the return of the Yanks to the market will make, isn't it? Today's extra - And, all kidding aside(well not entirely), we may have actually figured out a seedier side to why the Americans were buying today. Making more money is what trading commodities is all about. And while traders want to make as much money as they possibly can everyday, today might have had just a little extra sense of urgency to it, after this report hit the American press - article here Metals Insider - Week in Review - here Indications at 7:45 am CST were nickel was selling up by $.50/lb . And yes, that would be a new record high. Inventories of nickel stocked in LME warehouses slipped last night, and cancelled warrants (which represent warehouse stocks sold and due for delivery) increased again (see our first entry). With that kind of news, markets took off. (more) (We were asked yesterday if we knew what the all-time record high percentile in cancelled warrants for nickel was. We do not, but did find where in August of last year, it went over 60%.) Australian nickel miner Mincor's H1 profit quadruples to $41 mil - "Australian nickel miner Mincor Resources posted consolidated pre-tax profit of A$52.6 million ($41.4 million) in the first half period ended December 31, 2006, quadrupling year on year, the company said on Tuesday." - more here The Meek May Inherit the Earth, but not the Mineral Rights - "The Asia Pacific Economic Cooperation Group considers the world’s largest free trade pact" - more here Commodity investment seen at $120-150 bln by '08 - "Assets under management in commodity products may reach $120-150 billion by end-2008, according to a recent survey of 240 institutional investors conducted by Barclays Capital." - article here Behre Dolbear Global Mining News - pdf here Canada EDC Commodity Price Update - pdf here Mining law must provide certainty and equality - " Major mining companies versus junior mining companies -- there is a difference of opinion on how the current Indonesian mining law should progress, but both agree there needs to be two separate laws: one to allow long-life large-scale projects to proceed and one law for smaller projects." - article here Russia Slaps European Steel Producers with 3 Year Anti-Dumping Duty - "The Russian government has decided to impose a three-year anti-dumping duty of 840 per ton of steel with nickel content of 2.5 percent or higher imported from the European Union." - article here Today's beginning nickel inventory - minus 36 tons = 4,398 tonnes (52.80% cancelled warrants)

	Monday, Feb 19 Heritage Day in Canada, Democracy Day in Nepal, and President's Day in the US
	Today's LME nickel official closing prices - cash - $18.79/lb - 3 month buyer - $17.60/lb. We don't expect much to happen with nickel on the London Metal Exchange this week, with China all but shut down. Unless something newsworthy happens that affects supply, the markets will be watching LME inventory closely. There is always the outside chance that traders could start playing "Blind Mans Bluff" with each other, and force some movement in the market, but any major movement this week, is doubtful. Today, traders held their cards to their chest, and nickel ended the day at $17.55/lb ($38,700/tonne) (more) Blurb from Interfax - MMC Norilsk Nickel produced 244,000 tonnes of nickel in 2006, compared with 243,000 tonnes in 2005, the Arctic mining and smelting giant said in a press release. Mining companies looking for takeovers find prospects growing thin - "Mining companies, flush with cash from record metal prices, may be on the hunt for Canadian acquisitions to build scale or add new development projects, but the list of high-grade prospects is beginning to look thin." - article here Institutional commodity investors in for the long haul - Barclays Capital - "Institutional interest in commodities is here to stay for the long haul, according to a recent survey of 240 institutional investors conducted by Barclays Capital. Interest in commodities remains intact even though the nature of investment demand has changed, with institutional investors looking for more active, more selective investment products." - article here Rand Merchant Bank Weekly Base metals Report - pdf here At 7:50 am CST, indications show nickel is trading down by $.15/lb in quiet trading. Metals - Base metals markets quiet on Chinese, US holiday; lead hits all time high - "Base metals markets were quiet because of the Lunar New Year holiday in China and the Presidents Day holiday in the US, although most metals remained steady, underpinned by supply side issues." - article here Sumitomo Metal to boost nickel production by 2013 - "Major Japanese metals smelter Sumitomo Metal Mining Co. said on Monday it aims to nearly double its nickel output by 2013 to catch up with global majors such as Norilsk , the world's top producer." - more here Japan's Sumitomo Mining to build new nickel laterite plant in '09 - "Japanese nonferrous metal producer Sumitomo Metal Mining plans to build a new plant that will process laterite with nickel and cobalt content starting in 2009, to be ready for operation in 2012, the company said on Monday." - article here Funds in commodity markets are 'here to stay': Standard - "While the various fund players in the commodity markets all have different rationales and approaches, the funds are "here to stay," said Michael Skinner of Standard Bank base metals and sales. Speaking at the Platts Aluminum Symposium in Scottsdale, Arizona, in late January, Skinner said as a result of this investment, commodities in general would remain "stronger for longer." - article here Higher Metals Prices Ahead - "If there is any consensus among metals analysts it is that nickel and zinc should remain strong due to supply shortage, aluminium should falter due to excess Chinese alumina production, and copper should be unspectacular. Consensus also leans strongly to the bullish side for gold and silver." - article here Trout spawn mine battle - "Deep in the rugged hills of Michigan's Upper Peninsula, a meandering river harbors giant fish that once thrived throughout Lake Superior and its tributaries." - article here Fox signs nickel, copper off-take agreement with Jinchuan - "Leederville-based mining company Fox Resources Ltd has signed an off-take agreement with China's Jinchuan Group Ltd, allowing Fox to sell a bulk concentrate of both nickel and copper." - article here Third Country Imports Push EU Domestic Steel Prices Higher - "Underlying demand for strip products remains healthy in most EU countries. Several producers are already talking of higher prices in the second quarter. Official announcements by some major players have still to be made. Certainly, import prices for third country flat products are now above those quoted at the beginning of the year." - more here Chinese state companies will follow a different path - "At present, China is the largest consumer of stainless steel in the world. Moreover, it uses it more, than the USA and Japan all together, which take the second place in consumption after China. It is expected, that in 2006 import of stainless steel into the country will make up 2,5 mln. t, nd export will achieve 500 thous." - more here Coking Coal Production Costs May Decline This Year, AME Says - "The cost of producing coking coal, a key raw material for steelmaking, may drop for the first time in five years because of falling royalty payments and increased operating efficiency, according to AME Mineral Economics." - article here Today's beginning nickel inventory - plus 282 tons = 4,434 tonnes (50.88% cancelled warrants)

	Weekend Review, Feb 17 & 18
	"What we discovered, no matter where our research led us, was it is hard to step into the middle of a mud fight, without getting dirty." - We tackle the Fenix project with our two cents worth. - here Xstrata continues talks with Sudbury office staff - "Labor talks between Xstrata Plc (XTA.L: Quote, Profile , Research) and the union representing 215 office, technical and clerical staff at its nickel operations in Sudbury, Ontario, are focused on nonmonetary issues and contract language, the union said on Friday." - article here Xstrata outlines world class nickel sulphide deposit in Tanzania - "Xstrata Nickel will invest a further $95 million and commence a prefeasibility study to advance the Kabanga nickel project located in western Tanzania. An update to the preliminary resource estimate has also been announced for the project, a 50/50 owned joint venture between Barrick Gold and Xstrata Nickel, operated by Xstrata through a subsidiary." - article here Macquarie Research: China Commodities Weekly - "SHFE copper prices made strong gains last week helped by the surge in LME prices and reports of the strong recovery in Chinese copper imports in January. The SHFE copper front month contract climbed to Rmb55,610/t (US$7,129/t) at market close on Friday, a huge jump of Rmb2,240/t (US$287/t), or 4.2% from the previous week’s close." - article here China RoHS demands more from buyers - "Electronics buyers who think their companies' products will automatically comply with China's new Restriction of Hazardous Substances law because their products already comply with the European Union's RoHS legislation are in for a big surprise." - article here How about a little nostalgia? Here is a old clip from the US government archives on how steel is made - quicktime video here

	Friday, Feb 16 Happy Chinese New Year to our Asian readers - we hope you enjoy your two week holiday! Peace and prosperity. And to our Central/South American visitors who may be taking an extended weekend - a Happy Carnival / Mardi Gras for Tuesday!
	Today's official LME nickel closing prices - cash - $18.91/lb - 3 month buyer - $17.67/lb. Market was quiet in afternoon trading, with nickel ending the trading day and week at $17.65/lb ($38,900/tonne). (more) Hope you all have a peaceful and safe weekend! Cancer-heavy New Caledonia Launches Asbestos Study - "A major investigation is underway in New Caledonia to find out where asbestos, blamed for an unusually high rate of lung cancer on the French Pacific island territory, occurs in the environment." - article here (comment - is there anything that nickel mines are not blamed for? If those who are performing this study, would prefer not to spend the next year of their life in a tropical paradise(uh-hum), albeit allegedly plagued by asbestos poisoning, here is the finding of a lung cancer study that has already been performed in Sudbury, Canada - "Based on the total number of deaths, the principal lung cancer excess in the cohort was for miners and surface workers. The attribution of the increased risk to nickel is questionable, given the evidence of a similar risk among other hard-rock miners with no exposure to nickel" study here On the same page, you will find a study on asbestos and mining. We just hope they don't get a bad case of sunburn while they are trying to save mankind. That causes skin cancer, we hear!!) China Reports 3.78Mt of Nickel Ore Imports Last Year - "China imported 3.78 million tonnes of nickel ore last year, a 6.8-fold increase compared with the previous year, according to statistics released by the General Administration of Customs." - article here At 7:50 am CST, indications were nickel was selling down by $.13/lb . Tin and lead are setting new records today. (more) and (more) Trading shows no clear direction, so far today, and nickel could spike to a new record before days end, as easily as it could fall further. With China markets closed for the next two weeks, all eyes will remain on LME inventory levels. Follow-up to a headline we posted yesterday, the story was finally posted - Changes In Nickel Mining Herald Permanent Price Rise - "Fundamental changes in nickel mining will mean permanently higher production costs, and pose more risks for slower ramp up, cost blowouts and environmental concerns that will keep nickel prices at high levels in the future, analysts say." - article here Boost for Corrosion Resistant Materials Market - "The market for corrosion resistant materials is now capacity limited. New applications and growth in demand in Asia are causing shortages and extended delivery times for stainless steel, FRP, and other corrosion resistant materials and fabrications. This is the conclusion reached in the online, “World Market for Your Products”, published by the McIlvaine Company." - article here Commodities super-cycle not over, upward bias intact: Cr Suisse - "The commodities super-cycle is not over and over the medium term commodities are likely to provide higher returns than the consensus forecast, Credit Suisse said Friday." - article here China again tightens grip on credit - "China tightened its grip on credit yet again Friday in an attempt to prevent a torrent of cash generated by record trade surpluses from fueling an unwanted rebound in capital spending." - article here BMO Nesbitt Burns "The Goods - a Report on Commodities" - pdf here China’s stainless output up by 68% in 2006 - "According to the Stainless Steel Council of China Special Steel Enterprises Association, the stainless output in China has soared to 5.3 million tons in 2006, up by 68 percent." - more here Taiwan stainless to rise by $180~200/mt in March - "In February, Asian/Chinese stainless steel has been hiked by US$50 to 200 per ton in line with higher nickel cost." - article here Today's beginning nickel inventory - plus 162 tons = 4,152 tonnes ( 52.86% cancelled warrants)

	Thursday, Feb 15
	Today's official LME nickel closing - cash - $18.87/lb - 3 month buyer - $17.55/lb. Today was pretty much a repeat of yesterday, with inventories looking gloomy, and world economies sending positive signals. Nickel trading hit a new all time record high at $17.92/lb (3 month) and ended the day at that point - $17.92/lb ($39,500/tonne). Tin also hit a new all time record high on supply disruption concerns from Indonesia and the government seizure of the Glencore Vinto smelter in Bolivia, with aluminum coming in as the day's only LME loser. (more) and (another) Castillian Assumes Operator-Ship of the Mangabal Project in Brazil From Xstrata and Initiates US$2.5 Million Exploration Program - more here Courtesy and copyright Dow Jones - "Fundamental changes in nickel mining will mean permanently higher production costs, and pose more risks for slower ramp up, cost blowouts and environmental concerns that will keep nickel prices at high levels in the future, analysts say." We get a lot of visitors looking for nickel forecasts. While we follow these on the daily news, they can be hard to find later. We have added the January Reuters analysts survey to this page and added a permanent link in the right column. Indications show today has started much like yesterday, with the price of nickel at 7:45 am CST selling up by $.84/lb . (more) Here is a more complete monthly commentary by GFMS from Monday - here Blurbs from China - "The average wholesale price of steel products in China, the world's largest user of the metal, rose 5.4 percent in January from a year earlier, the People's Bank of China said." - "China's State Information Center report is forecasting China's first quarter gross domestic product (GDP) to grow by 10.2%" - "Baosteel Group Corp and rival Wuhan Iron & Steel Group are seeking iron ore projects in Australia to meet rising demand." - China's Jilin Nickel wants more partners in Nonoc plan - "Jilin Nickel Group, China's second-largest producer of the metal, would need to find more partners if it were to invest in the Nonoc project in the Philippines, a company official said on Thursday." - article here Nickel - Current Wochenkerzenchart (log) since November 2003 (1 candle = 1 week) (translated article here) Rusina Mining Announces Nickel Find In Acoje - Phillipines Project - "A maiden JORC resource of 33 million tonnes of nickel laterite grading 0.95% nickel and 0.07% cobalt has been announced for the Acoje project in the Philippines being developed by Australia's Rusina Mining Limited" - more here As commodities lose luster, S&P very positive on nickel and reasonably so on copper - "While there is no question that “commodity prices have lost their luster,” Standard & Poor’s analysts suggested Wednesday that “the average price curves for the next five years should be meaningfully higher than they were for the prior five years ending 2004.” - article here Albidon eyes trial startup at Zambia nickel mine - "Albidon Zambia on Wednesday signed a power supply agreement with Zambian state utility Zesco, which will enable the firm to start trial operations at its nickel mine, a senior industry official said on Wednesday." - article here A green charter for Koniambo - "The northern Province and Koniambo Nickel SAS signed, yesterday morning, an environmental charter to limit the environmental impacts of the project of the factory of North. A committee was created to take care of its application." - translated article here Two articles, same topic - "End of the affair for commodities" - (article here) and "Investors cut exposure to commodities" - (article here) EU alloy surcharges to hit new highs in March - "Most of European stainless steel mills including Ugine & Alz, Outokumpu, and ThyssenKrupp have announced to increase its stainless steel product price to smooth over their cost pressure from higher nickel price." - article here Xstrata Nickel Commits US$95 Million, Updates Resource Estimate and Commences Pre-Feasibility Study at Kabanga Joint Venture Nickel Project, Tanzania - press release here Today's beginning nickel inventory - plus 66 tons = 3,990 tonnes ( 52.48% cancelled warrants)

	Wednesday, Feb 14 - Happy Valentine's Day
	Today's official LME nickel closing prices - cash - $18.27/lb ($40,275/tonne) - 3 month buyer - $16.92/lb. At first glance this morning, it appeared LME nickel inventories gained for a 7th straight day. But when we pulled up the cancelled warrants figure, our first reaction was "censored" (sorry miners - we buy stainless). The market apparently had the same reaction. At day's close, nickel on the London Metal Exchange ended at $17.00/lb ($37,475/tonne). (more) (A look back - one year ago today, trading ended the day at $6.95/lb, with most analysts still forecasting 2006 averages to be in the $4.50 - $7.00/lb range. It actually averaged $11.01/lb. Inventories were at 36,186 tonnes, and after peaking on February 2, 2006, at 37,218 tonnes, would spend the remainder of 2006 in a slow gradual slide, most notably from June1 thru July 1, when nickel inventories stored in LME warehouses fell by 43%. Inco and Falconbridge had already extended their offer to merge twice, and Xstrata, Teck Cominco, Phelps Dodge, and CVRD had yet to make their move.) Mine Mill, Steel families expected to buy big ticket items - "Greater Sudbury’s economy is expected to benefit from a huge influx of cash over the next few weeks when the men and women working for Xstrata and CVRD Inco cash their bonus cheques." - article here Courtesy /Copyright Dow Jones Newswire - "The hike in London Metal Exchange nickel canceled warrants highlights the likelihood of further declines in inventories in the coming days, says Calyon analyst Michael Widmer. "This is highly significant, because stocks are very low at the moment and the nickel market remains tight," he notes. But despite current upside momentum for prices in the short-term, the physical market will be rebalanced into a surplus in 07, implying prices will fall later in the year." DJ LME Nickel Inventories Key To Future Price Direction - "The market will continue to keep a close watch on nickel stock movements in determining future price direction, said traders, as critically low inventories and signs of further tightening in the near-term boosted London Metal Exchange nickel prices to an over one-week high Wednesday." - article here Chinese giant Jinchuan eyes tie-up with Lucio Tan firm - "CHINA’S largest producer of nickel and cobalt, Jinchuan Group Ltd., is doing a due-diligence study on a nickel mine site of tobacco tycoon Lucio Tan's MacroAsia Corp. in Palawan Island, MacroAsia told the stock exchange Tuesday." - article here Fix Ramu mess’ - "FOREIGN Affairs and Trade Minister Paul Tiensten yesterday appealed to the Government and Ramu nickel mine’s Chinese operators to discuss how problems uncovered at the mine could be addressed." - article here Indications at 8:00 am CST show nickel selling up by $.82/lb . Today's closing, which we post at 12:30 pm CST, will give today's "official cash closing" at over the $40,000/tonne mark. If you are wondering why the market is so high today, look at our first daily entry. You would think that a gain of 156 tons would be positive. And it would be, except if you look to the right where we have posted the cancelled warrants, you will see it jumped from 15.61% yesterday, to 53.98% today. For all practical purposes, this means inventory levels actually fell overnight, and quite dramatically. And the market is responding accordingly. Could we see a new record high today? Stay tuned. Amur Minerals says wins Russian nickel auction - "Amur Minerals Corp. has more than doubled its exploration area in the Russian Far East after winning an auction for a nickel, copper and platinum deposit, the London-listed company said on Wednesday." - article here Canadian firm lining up Philippine nickel deals - "Canada's Chemical Vapour Metal Refining Inc. (CVMR) is in talks with five Philippine firms to buy nickel ore and hopes to include China's Jilin Nickel Group in a possible successful bid for the Nonoc nickel mine." - more here New Caledonia law to leave ore exports unchanged - "The French territory of New Caledonia is unlikely to change nickel ore export regulations under a new minerals law that will be brought to a vote in the next few months, government officials there said on Wednesday." - article here Behre Dolbear Weekly Global Mining News - pdf here Metal Merger Mania - "Whether or not BHP Billiton or Rio Tinto buys Alcoa for $40 billion as the stock-market rumor machine has it, a deal of that scale in the metals industry is a question of when, not if." - article here Source mineral.ru - "The specialists of the World Bureau of Metal Statistics announced the nickel on the world market in the first 11 months of 2006 amounted to a 80 ton deficit." BHP boss ripe to head Alcoa break-up - "THE most obvious catalyst for any takeover bid for US aluminium giant Alcoa is likely to be a break-up of the company to focus on alumina and smelting, and ironically BHP Billiton chief Chip Goodyear has just the right track record to do the job." - article here Chinese stainless flats prices down before Chinese New Year - "Due to sluggish market and low demand, the stainless flats price is likely down before Chinese New Year Holiday." - article here CVRD sees limited potential to expand in Russia - "Brazil's CVRD, the world's largest iron ore miner, is studying partnerships with steel makers in Russia but does not view the country as key to its expansion, a senior company executive said on Wednesday. Peter Poppinga, senior managing director of CVRD International S.A., told a metals conference that Russian steel mills were meeting a large part of the country's growing consumption by reducing their own exports." - article here Today's beginning nickel inventory - plus 156 tons = 3,924 tonnes ( 53.98% cancelled warrants)

	Tuesday, Feb 13
	Today's official LME nickel closing - cash - $17.51/lb - 3 month buyer - $16.42/lb. Traders were in a buying mood, convinced yesterday's drop was unjustified and today's nickel cost a bargain. LME nickel, caught up in the buying frenzy of other metals, ended the day at $16.33/lb ($36,000/tonne) (more)