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Nickel: The proposal is redundant in 2014

Despite the entry into force of the Indonesian ban on exports of nickel ore from January 12 this year and a slight increase in the cost of the metal due to this factor, the measures taken were not very significant impact on the world nickel market. So, in 2014, the proposal still remains excessive in comparison with the demand, and analysts predict the emergence of a more or less noticeable shortage in the world market can occur no earlier than 3 or even 6ti months.

One of the main factors that affect the oversupply, there is an increase in production, which provide new nickel projects entered into production some time ago. Unfortunately, at the moment they are unable to afford enough depth regulation of production. Based on data from the forecast provided by an international research group «INSG», we can say that in 2014 nickel smelting in world production will be 1.97 million tons, which is, in turn, a 3% increase compared to the same period last of the year. As for the production volume provided by the new projects for nickel, it will be about 6% of the total amount. In particular are the following projects:

— Brazilian project «Onca Puma», which started in 2011, but was stopped in 2013 until September due to construction of a new furnace. Despite the forced delay, in 2014 a significant increase in production is planned;

— Brazilian project «Barro Alto» — in the process of implementation of the production in 2012 increased to a volume of 21 thousand tons. Last year, started full-fledged operation of the first production line, the second line was able to reach full capacity in the second half. In terms of production, according to preliminary plans for 2014 must repeat performance of last year;

— As part of the New Caledonia project «Koniambo», launched in 2013, the first production line was launched that to its full capacity, the work on this issue will begin this year;

— Started the project of Myanmar «Taguang Tang» for the production of ferronickel was planned for 2012, but experimental work began only in March last year. However, in 2013 the production volumes quite impressive, the plans in 2014 are not known;

— Start of work on the project in Madagascar «Ambatovy» was delayed for six months, so that instead of the full-scale operation in 2012 only began in the last year and early this year ore processing has reached the 70% level of the planned capacity.

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