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Nickel Financing Seen by Macquarie ‘Hoovering Up’ Supplies

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Financing accords involving nickel are helping to absorb a glut of the metal used in stainless steel and supporting prices, according to Macquarie Group Ltd.

While $15,000 a metric ton should represent a floor this year based on fundamentals, prices are unlikely to fall below $16,000 because of the extent of financing of stockpiles, said Jim Lennon, head of commodities research at Macquarie in London. Nickel for delivery in three months fell 1.7 percent to $16,935 at 4:53 p.m. on the London Metal Exchange.