Nickel may rise further by 20% - Credit Suisse
Credit Suisse Group in a recently released report said that the price for nickel may increase by 20% as a shortage of smelters to process ore into metal constrains supply.
Mr Jeremy Gray and Ms Eily Ong Credit Suisse said that nickel may reach USD 65,000 per tonnes in the near term as smelting output may grow at 4.6% in 2007 as compared with demand growth of as high as 5%, should stainless steel makers rebuild inventories and global economic growth increase.
Mr Gray and Ms Ong wrote in the report said that "Prices will remain strong over the next two years given the lack of supply growth until 2009 at the earliest. The current profile of new smelters is unlikely to be enough to feed ongoing strong demand from the stainless steel industry in the next two years."
As per report, nickel for immediate delivery rose to a record USD 54,050 per tonnes in London on May 15th 2007.
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