It is reported that nickel prices have bottomed and are likely to stabilize as SS makers have started buying to build their inventories.

Credit Suisse said that "Nickel prices appear to be bottoming out as stainless mills begin to slowly restock and this could push LME prices significantly higher. Notes nickel supply growth is likely to be 4.6% in '07 and 5.3% in '08 in an industry where nickel demand can swing from 0% to 10% depending on the restocking and destocking cycles of the stainless producers."

Mitsui Bussan Commodities Limited said "Consolidation of the mining industry into financially strong industrial groups is providing the exploration and development capital to pursue major resources, but the scarcity of world class deposits in copper and nickel has been an impediment to a ramp up in metal supply."

Mr Michael Khosrowpou analyst for Triland said "Nickel stocks held by exchanges, industry to continue to rise in short term which should soften prices. LME nickel retains recently gains after LME lifts nickel lending guidance imposed June 6th 2007 to stop market becoming disorderly; move past USD 33,000 per ton likely to trigger upside stops, r; adds upside advances past USD 36,000 appear capped for now as result of current high underlying stock figures."