NICKEL PRICES UNLIKELY TO RISE MUCH - SHEARSON
  Nickel prices are unlikely to rise
  significantly from current levels unless further steps are
  taken to reduce production, Shearson Lehman Brothers said in
  its quarterly nickel market report.
      The market had recovered slightly to around 1.72 dlrs a lb
  yesterday from its four year low of 1.55 dlrs in early January,
  due to the absence of Soviet nickel cathode deliveries, but
  Shearson sees Soviet shipments soon returning to last year's
  buoyant levels, which should ease current tightness.
      Output reductions by producers will take effect later this
  year but are likely to be offset by increases elsewhere.
      Shearson said the nickel market will be virtually in
  balance during 1987, with total non-Socialist world demand at
  556,000 tonnes, compared with an estimated 544,000 tonnes in
  1986, production at 505,000 tonnes (504,000) and imports from
  Socialist countries at 47,000 tonnes (50,000).
      It forecast prices will edge higher during the year from a
  first quarter average of 1.67 dlrs a lb up to 1.77 dlrs in the
  last quarter. The year's average will be around 1.72 dlrs a lb
  compared with 1.76 dlrs in 1986, using London Metal Exchange
  cash metal prices in dollar terms and assuming an average 1987
  sterling exchange rate of 1.55 dlrs.
  

