MARKET TALK: LME Nickel Continues Higher;Eramet Strike

LME nickel prices continue to push to new record highs as the ongoing strike at Eramet's New Caledonian operations hangs over the market, along with talk of further production losses at Inco's Canadian operations in the fourth quarter, says Macquarie. Moreover, with the US out for holiday, the market is not subject to the usual US selling into the rallies, says BaseMetals' William Adams. Nickel stocks also remain at critically low levels, adding to price strength, says BMO Capital Markets. LME nickel trades at $33,100 per metric ton, up from PM kerb of $32,400/ton, but down from Friday's high of $33,450/ton.