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Analysts expect a deficit in the nickel market

According to the research group of the CRU, nickel production this year may fall below the total demand for the first time in four years, due to an increase in its use in the production of stainless steel.

Analyst group Maartje Collignon (Maartje Collignon) said that nickel deficit in 2010 may reach 20 thousand. Tons, while in 2009 a surplus of 45 tonnes was recorded This year, nickel prices on the LME have increased by 20%, more than the other metals, as stainless steel producers increased their purchases.

«We believe that nickel deficiency, which would fuel prices will occur in this year. In the third quarter, we expect a drop in prices because again begin to operate the projects that have been stopped in the past year «, — the analyst said.

He added that the CRU has increased its forecast for nickel prices up to 18 $ 960. 17 per ton from US $ 416. Per ton, which predicted in December.

IAC «Mineral» based on China Mining

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