Nickel, which posted new record highs in every trading day of week 11, has declined by some USD 4000 per tonne (pt) in week 12 alone and is some 10pct off an all time high of USD 48,500 set on 16 March 2007. At 11.28 am on 21 March 2007, LME nickel for 3 month was down at USD 43,220pt against USD 44,600 at the close on 20 March. While a nickel correction has been long overdue, prices are not expected to plunge as stocks remain critically low and as demand from the stainless steel industry, which accounts for 70% of nickel consumption, is still strong. JP Morgan analyst Michael Jansen said while nickel might yet make another run at the USD 50,000pt mark after this correction runs its course, on a longer term view he sees lower prices for the metal. “We see nickel prices substantially lower over the long term, our 2008 average price forecast for instance is around the USD 20,000 a tonne level, hence we remain bearish,” he said.