Nickel spreads tighten: Nickel’s forward curve has seen a dramatic change over the last couple of days. The frontend of the curve is flipping into backwardation. On Monday, the cash-3-month spread was $30 contango while by Thursday evening it was trading at $40 backwardation. The Dec19-Dec20 spread was valued at $240 contango on Tuesday, tightened to $150 contango on Wednesday and further squeezed to $70 contango on Thursday. This implies massive spread borrowing along the curve. Currently, LME nickel inventory levels are at their lowest level since mid-2015- consistently edging lower. The tightening of the front end of the curve with low stocks does not bode well for those shorts in the nearby prompt dates, with the potential for a further squeeze.