Are skyrocketing nickel prices predicting war with China?
By Alec Nevalainen Published March 17, 2007 The price of nickel closed at $22.3394/lb on Friday March 16, an all-time high. In one year, the price has risen 337%. Nothing is normal about this parabolic price action. The recent price surge is strange because many in the mainstream financial community are forecasting a commodity price correction or at least a mild recession later this year. We’re also in the middle of a confirmed housing/construction slowdown and you have to wonder why the base metals aren’t trending lower instead of setting all-time highs. Perhaps the U.S. economy has lost enough relevance and a regional slowdown means little to global demand. Or maybe base metal stockpiles are still too low, and mine supply can’t raise enough production to meet even marginal demand. Those are plausible explanations, but the markets could be telling us something else. Nickel’s primary use (65%) is in the manufacturing of stainless steel, with a further 20% of nickel consumption being us
