According to Mundin, the company is struggling to close sales contracts of nickel produced. "The customer wants to make a three-year contract, but can not guarantee product after 2016, due to the operation currently being made at a loss," explains the director.
This now proves at current Ni Pr, Producers can not lock on a long term Contract as like MBN ,
if Ni Pr does not improve then you can not deliver the goods long trem as you might as well go C & M.
This probably why the meeting will be held in HongKong to discuss the long term Off Take.
This incline me to think that Chinese importers are having difficulties getting long term
suppliers as no one can commit to a low Ni Pr buy offer. That is why MBN will not commit
to a deal now us it knows we will get a better offtake deal when supplies are in critical level.
C & M is the way to go.
As you can see, they are looking at a deal after 2016, ofcourse it is better not to commit now, wait
what happen after 2016 then we do the long term offtake deal. By then the Pr of Ni will
be a lot higher therefore offtake price will also be a lot higher. Right now the Chinese can
dictate the price but not when they don't have a long term supplier lock in by end of this year.
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