MARKET TALK: LME Nickel Evades Selling; Tightness Remains

LME nickel fell overnight but avoided much of selling pressure elsewhere in metals as participants reluctant to short market, says Commonwealth Bank of Australia commodities strategist Tobin Gorey. Market gyration of late last year - when LME stepped in to limit nickel nearby backwardation - still fresh in traders' minds; "no one wants to be caught short. At some point this super tightness will ease but it's impossible to predict when." CBA 2007 nickel average price forecast is $30,000/ton; LME 3-month nickel last at $37,699, +$349 on Monday PMM kerb.