Inco to buy more metal

Inco to buy more metal

NEW YORK (Reuter): Inco Ltd., the Canadian nickel producer, said it will have to buy more metal on the LME because of its production shortfall in the third quarter.

Inco said earlier today its third quarter nickel production was 12 million pounds or 5,443 tons lower than planned because of start-up problems after shutdowns in Canada, and some equipment failure at Inco's 58 percent owned subsidiary, PT International Nickel Indonesia.

Inco spokesman Bob Purcell said all output is pre-sold. "We expect to make up the lion's share of that loss in the fourth quarter," Purcell said.

"We routinely buy a large quantity of product off the LME," Purcell said.

Inco plans to produce about 400 million pounds of nickel this year or 181,437 tons, compared to 345 million pounds or 156,489 tons in 1994.

Purcell was unable to put a figure to the overall shortfall in 1995. "But it will not be a lot below target," he said.

Inco sells about 500 million pounds of nickel year - the balance made up from other sources including LME stocks.