I think that would be a ease of mind............my super is in...

I think that would be a ease of mind............my super is in mre too............mmm



Despite Stainless Cuts, Nickel Demand will Outpace Supply
By: Dorothy Kosich

RENO--(Mineweb.com) Inco Executive Vice President of Marketing Peter Goudie suggested Tuesday that spectators are "misunderstanding where--and why" the weakness in nickel prices is occuring.

In a brief third-quarter conference call Tuesday, Goudie noted that nickel prices has fallen due to a weakness in demand from the stainless steel industry. China's reliance on imports to meet domestic stainless demand has fallen to less than 50%, he said, resulting in a "major impact on countries and companies that rely on exporting their excess stainless steel production."

The excess supply resulted in high inventory levels, forcing the stainless industry to cut production, Goudie explained, "and the snowballing effect on nickel began." Nevertheless, he added that Inco had previously forecast that this situation may occur.

Goudie declared that "the good news is that a recovery is in sight, as the composite leading indicator is positive and improving each month. Purchasing manager indexes are improving and core inflation remains in check. We're now in the trough and expect to see 18-to-24 months of good economic growth after this quarter."

"The slowdown this year is simply returning stainless steel production growth in this cycle closer to the trend of 6% per year," Goudie asserted, adding that "we have heard that inventories in China are now near normal. Globally stainless prices are stabilizing and several meltshops will return to full production this quarter, as orders are increasing and inventories are lower."

"Demand for our products remains strong," Goudie declared. "In fact, we are operating at just 65% of our average inventory levels over 15 years or almost 10,000 tonnes below normal."

"It is becoming increasingly clear that nickel supply will struggle to keep pace with demand for a few years," he claimed. "China and other emerging markets like India will drive demand growth well above the historic 4% average. New projects are becoming more and more difficult to begin, due to high capex, new technology, environmental permitting, labor shortages and facing challenges."

THIRD QUARTER RESULTS


In contrast to proposed acquisition target Falconbridge's 81% increase in net earnings, Inco's net earnings for the third quarter of 2005 dropped to $62 million or 33 cents per share, compared to $142 million reported during the same quarter of 2004. Inco announced on October 11th that it intended to acquire Falconbridge in a friendly takeover offer.

Inco Chairman and CEO Scott Hand said Tuesday that the new Voisey's Bay operation in Labrador will ship its first nickel concentrate next month. Hand also declared that the Goro nickel project in New Caledonia is proceeding well with major permits for construction having been received and $140 million in contracts being awarded.

Inco President Peter C. Jones forecast that the company will produce140 million to 145 million pounds of nickel, 90 million pounds of copper, and 76,000 to 86,000 ounces of PGM during the fourth quarter of this year