Nickle Supply likely to be surplus from 2009-2012
According to a forecast by Greg Barnes TD Newcrest Metal Analyst, nickel is likely to be in surplus between 2009 and 2012, which may force in future some of the nickel projects to be shelved.
Nickel production is likely to accelerate this year as new mines begin production.However, as the next generation of nickel mines come to production, adding an additional 10% to current nickel capacity, it will lead to surplus in the market. According to the forecast, the nickel supply/demand will slip back into significant deficit by 2013/2014.
Stainless steel restocking in Europe and Asia during the second half of this year is likely to pick up as average nickle prices are in the range of USD 12-15 per pound. Chinese stainless steel demand is expected to improve during the second quarter. According to the forecasts, China's stainless steel production will exceed that of all western world producers by the year 2009.
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