Nickel prices to remain stable throughout 2010Although global...

Nickel prices to remain stable throughout 2010

Although global demand for nickel has fallen for three consecutive years, a recovery in the global economy should follow through to see consumption increase in 2010. Roskill forecasts nickel consumption will increase by around 7% in 2010.

The rise in demand for nickel in the coming years is primarily due to an increase in demand for stainless steel. Stainless steel production, the largest end-use for nickel, is forecast to reach 27Mt in 2010 (an 8% increase year-on-year), and almost 30Mt in 2011.

As demand for nickel increases across the globe, production is likely to follow suit. A market surplus of around 75,000t is forecast for 2010, as output of primary nickel increases to 1.4Mt.

Given the market surplus forecast to develop between 2010 and 2012, nickel prices are expected to be stable. The annual average price in 2010 is forecast to be around US$20,000/t, and expected to rise in both 2011 and 2012. The average price between 2010 and 2012 is forecast at just over US$22,000/t.

The above summary is extracted from the Roskill report entitled Nickel: Market outlook to 2014, edition 12 2010 published 08/01/2010 - 304 pages, 188 tables and 96 figures. The full report is available from Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB, England at 3500 / US $7000 / 5600 Euros. Tel: +44 20 8944 0066. Fax +44 20 8947 9568 Email: [email protected], Web: http://www.roskill.com/reports/nickel