New studies point to higher nickel prices 17 January 2003
WORLD nickel prices look like going much higher, according to fresh studies of supply and demand for the metal.
National Bank Financial, a Canadian bank, has lifted its 2003 forecast price to US$3.65 a pound (US$8176 a tonne), a US25c a pound increase on its previous estimate.
However, the bank added that any supply disruption could easily see the price exceed US$4 (US$8960) a pound.
In a separate development, prices on the London Metal Exchange continued to rise, closing at US$8010, after briefly touching US$8060.
Standard Bank said Chinese demand was playing the leading role in pushing nickel higher, mainly because of booming demand for stainless steel.
Chinese consumption of stainless steel totalled 2.3 million tonnes in 2001. Consumption in 2005 is expected to go as high as 4Mt.
