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Nickel consumption exceeds production

During the 7-month period of global nickel consumption exceeds its production. However, the deficit has arisen in this case is not too large. Excess metal is 16 ths. tons in the period from January to July. However, compared to the 2014 year performance encouraging. According to data provided by the World Bureau of Metal Statistics amount of surplus in 2014 amounted to 241 800 tonnes. At the same time stocks in the warehouses of the London Stock Exchange reached 44 thousand. Tonnes by the end of July. This figure is higher than the final result, 2014.

For 7 months of nickel mines developed in 1111 th. Tons of metal. the same period of 2014 figures were up 53 thous. tons. Under the influence of the Indonesian ban the country's mines have significantly reduced performance. The export of mineral raw materials from Indonesia has been blocked since January, 2014. National mining companies handle raw materials in their own factories. Only after this realization made abroad. Miners are not too happy with the government decision. Not long ago, experts were of the view that the resolution on the export of raw materials needed. Its validity was indicated within a year. This is particularly relevant these recommendations relate to nickel. However, the government prefers to consider other incentives. Volumes of production of refined nickel per 7mesyachny period reached 1096 thousand. Tonnes. In general, the plants in July 2015 developed in 1701 ths. Tons of nickel. Processing of nickel produced in Japan in January-July increased significantly relative to 2014 figures.

As for the demand side, for 7 months of the metal consumption amounted to 1112 thousand. Tonnes. In July, the plants processed 201.50 ths. Tons of nickel. In Japan, demand increased by 0.4 thousand. Tons compared to January-July 2014. In annual terms, the global metal consumption increased by 103 thousand. Tonnes.

«Norilsk Nickel» Experts believe that the price of nickel will remain fairly low. Anyway, for 3−5 years. Given the situation, the corporation has developed a program to reduce costs. Now the price of nickel has fallen to the level of about 10 000 USD / ton. Inventories LME at this time persistently move to the next maximum. cost optimization program of «Norilsk Nickel» is based on expectations of a relatively small recovery in metal prices. At the same time it does not include the possible additional tax risks. The first results of the program, developers expect to see in May 2016.

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