Nickel continues to stay elevated
By Tom Stundza -- Purchasing, 6/27/2006 2:00:00 AM
Nickel demand has been strong for the last couple of years and world prices surged again recently, closing last week at $9.41/lb on reports that inventories had slumped to an eight-month low. Nickel stockpiles monitored by the London Metal Exchange fell 8.2% to 13,872 metric tons, their lowest level since mid-October. Inventories have dropped 61% this year while demand from stainless-steel makers is growing. Consumption will rise 7.9% in 2006, exceeding production by 15,000 metric tons, forecasts Credit Suisse Group in a new report. That’s based on International Stainless Steel Forum forecasts that global stainless steel output will rise 8.9% this year to 26.4 million tons, led by a 10% increase in Asia. Stainless steel production is soaring in Asia. "This continued falling of (inventory) stock levels has been a great driver for nickel," says analyst Mike Skinner at Standard Bank in London. Nickel traded on the London Metal Exchange gained 48% already this year. Nickel demand will be "considerably stronger" through 2008, write analysts at Goldman Sachs JBWere in Sydney, Australia. That brokerage believes nickel this year will average $7.42/lb. The mid-June consensus forecast is somewhat lower, at $7.08/lb, but that’s still up from the $6.66 average in 2005.
Nickel price run downplayed by analysts
05/12/2009
Now Playing: 