Interesting article Whaler.

"This presentation argues that the period of declining prices was the product of a specific and essentially non-repeatable-set of conditions which are coming to an end, and that the recent strong run of prices should be thought of less as a regular cycle than a sympton of an industry undergoing a transition"(p2)

It seems to me that when Ni prices were at an all time high that our companies reflected that same price and many exploration companies were pushing to get their Ni on line to catch some of the action. Now we are hearing of LME inventories increasing and bigger projects ready to come on line. On the Demand side we are hearing of stainless steel industries being in short supply but not necessarily stocking up, of China stopping their production of stainless steel in order to facilitate a better air quality for the olympics, then you had the cascading effect of the credit crisis.

Now their is an energy crisis and that input cost is having a cascade effect felt throughout the economy. Is this the transition trigger that is going to make Ni prices move up simply because it caused a shift in the supply curve. Then could it be argued that unless Ni prices increase the supply will not be met because businesses are not going to be able to produce it at the lower costs?