Has taken one awful price pounding lately and while it's looked a bit stronger it's not likely to recover in short term. This report from China indicates a slacking in demand even with lower prices.

China's largest nickel producer Jinchuan Group has lowered its target
output for electrolytic nickel to 100,000 mt in 2008, down 16.7% from the
initial goal of 120,000 mt on the back of unfavorable market conditions, the
company said in a statement over the weekend.
     Jinchuan said that the weakness in the nickel price had forced many
Chinese domestic stainless mills in area including in Yunnan and Chongqing
to halt or cut production. Many stainless steel product producers in the
provinces which include Xinjiang and Inner Mongolia had also ceased
operations, Jinchuan added. The company also noted that imported nickel ore,
currently totaled at over 10 million mt, was lying at local ports.