MARKET TALK: Stocks, Possible Strike Underpin LME Nickel

Dwindling LME stocks and news that talks between Xstrata and unions at its Sudbury operations have made no ground are underpinning nickel, a broker notes, with further gains expected. "The market's not just pricing in the possibility of a strike - it's preparing for the likelihood that stocks won't change for some time yet," he adds. LME three-month nickel is at $38,500/ton, down from an all-time high of $38,798/ton Thursday. Cash nickel is at a new high of $41,425/ton.