"At some point there is a cost that mines can't operating at a profit and will begin to shut down - but that could take some time. It’s like trying to stop a fully loaded super tanker. Hopefully we’ll see a rebounding of the price of nickel and a corresponding drop in the cost of diesel fuel. "

I often wonder if the big producers think ahead and look to taking supply out of the market to bring up or at least hold Ni prices? As you say once the inefficient and high cost producers are out of business the market probably starts to balance out. Survival of the fittest as they move forward. Didn't the big diamond producer out of Africa (DeBeers)try to keep diamond prices in a zone by limiting production?

http://www.theatlantic.com/doc/19820...