Vale Digs Nickel And Iron All The Way To $42

Forbes reports that their price estimate for Vale (NYSE:VALE,SAO:VALE5) is $42, which is roughly 30% ahead of market price.

The market news is quoted as saying,

As a result of high demand and limited supply, average realized price for nickel touched a high of $17 per pound in 2007, before falling to $9.8 in 2008. Prices hit a low of $6.63 per pound in 2009 as stainless steel production globally was cut due to the global economic recession. 2010 was a positive year for nickel producers as the average realized prices jumped to $10 per pound following an increase in demand and growth in production.

We expect a jump in the nickel production for the year 2011 and a stable 4-5% annual increase thereafter.

For the complete market news, click here.