Nickel the outperformer among the base metal complex in 2014 rose 50+% in just five months while the commodity has been continuously declining for the past five weeks fading the gains to 30%. We understand that the underlying fundamental for the commodity is still remains bullish while the current price fall is merely the profit booking by the investors’ of their prior long positions. While, we assess the volume and open interests position at LME, we notice that the volumes have been maintaining at the 15 months average levels while the open interest declined from 0.246 million tons to 0.228 million tons. This gives us a precision that the prices are declining just because of prior positions being squaring off.
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