News such as this one below can only auger well for the 2010 share price of Noront.
Regardless of all else initial runup of NOT was because of the Nickel, so perhaps our
share price will
soon reflect it's true value. Steel demand is strong and growing with iron ore producers
ramping up production to meet demand. It all points to a very potentially positive year
in the commodities. My bet is that the ROF will be huge this year with NORONT emerging
as the frontrunner...and with me having a few more spondulicals to spend.
Pete
Nickel has performed overwhelmingly well and has been a star performer this month, rallying over 22%.Nickel inventories at London Metal Exchange-registered warehouses climbed 1,836 tonnes on 24th December, 2009 to hit a record high at 152,400 tonnes due to tumbling stainless steel demand.
The previous record was 151,254 tonnes on November 25, 1994. The major reasons for this huge rise in the inventory level for the metal was tumbling steel demand and a slowdown in Chinese imports which has now started improving.
But nickel prices shrugged off the weak supply fundamentals, rallying to a two month high of $18,965 a tonne, after gaining more than 50 percent since the start of the year.
The Chinese industrial output growth in November jumped to its strongest since June 2007 and good demand from consuming industries at spot markets led to the rise in nickel futures prices.
Nickel staged a strong recovery in December as anticipated in last month’s report. Market dusted aside a strong LME stockpile build up. The metal took support at Rs.730-740/kg price range having bounced off thrice during November end and December beginning from the same before scaling past Rs.900/kg mark.
This support level also corresponds to the Fibonacci retracement level of 50% from the 2008 low- Aug 2009 high. Hence looking ahead, this should remain the important level to gauge future price direction.
One can expect the bullishness in Nickel to persist for this month as well and traders can go long on dips. Market is likely to present excellent buying opportunities at Rs.800-840/kg levels for directional trades.
Courtesy: Religare Commodities
