sherlock nickel

The feasability on the Sherlock Bay nickel project was done at $11,000 per ton.,, Nickel Rises to a Record for Second Day on Concern About Supply

By Brett Foley and Chanyaporn Chanjaroen

Jan. 19 (Bloomberg) -- Nickel rose to a record for a second consecutive day in London on speculation that possible supply disruptions may further erode stockpiles.

Xstrata Plc's Sudbury unit in Canada and a labor union representing more than 1,000 of its workers are in talks to renew a labor agreement expiring Jan. 31. The union voted Jan. 16 to authorize a strike should an accord not be reached. Nickel stockpiles in warehouses monitored by the London Metal Exchange are now equal to less than two days of global demand.

``Supply uncertainties persist and there is potential that they put further upward pressure on prices,'' Michael Widmer, director of research at Calyon in London, said today in a report. Calyon is a member of the London Metal Exchange.

Nickel for delivery in three months jumped $600, or 1.7 percent, to $36,000 a metric ton as of 4:21 p.m. in London. It earlier reached a record $36,250. The metal has gained 11 percent this week, the most since the week ended Nov. 24.

Nickel, used in stainless steel, is the only gainer among LME-traded metals this year. Demand exceeded supply by 80,000 tons in the 11 months to the end of November, Ware, England-based World Bureau of Metals Statistics said Jan. 17. LME-monitored stockpiles total 5,178 tons.