MARKET TALK: Nickel May Drop To $36,000; Xstrata Agreement

LME 3-month nickel may fall to $36,000 or below on reports Xstrata, Canadian Auto Workers have reached tentative labor agreement, says trader at major Japan house. Adds technical support far below current price; LME-3 month last at $36,999/ton, +$49 vs London PM kerb but untraded in Asia. However, notes recent profit-taking in wake of rally that reached record-high $38,950 last Friday has mostly ended, continued drawdown in LME nickel stocks should help nickel stabilize after Xstrata-related sell-off.