The analyst thinks, current nickel price is brought about a few medium or small nickel company survives pressure is enormous, price of nickel of even if future rises somewhat, nickel price may restore to produce limit cost left and right sides to nickel only before the bottom 2009. At present cost of production of nickel of area of Canadian Sudbury Basin In Ontario is 7-8 dollar about / pound, somebody is forecasted 2009 nickel all valence is 7 dollars / pound, the person that have pessimism more predicts to be 6 dollars / pound. Need and need pictures states project of its Ravensthorpe nickel produces cost to be 8 dollars / pound. Low nickel price brings about global part to new project defers to build or postpone date of put into production.
At present LME nickel inventory already was as high as 56586 tons, be from December 1999 the highest value since the portion. If nickel price continues low fan, four quarters will have more nickel companies possibly the choice is strategical stop production measure. FNX mining industry and First Nickel company suspended his be being produced in Sudbury area nickel last week, poseidon nickel course of study also will stop his to be in Windarra project of Australia. Although nickel price is low,confuse, but the construction of large nickel project still proceed.
The analyst points out, chinese government is at present comfortable money is constrictive policy, publish interest good news to prop up real-estate industry to restore, this likelihood is opposite exciting China market the demand of stainless steel and nickel.