Nickel market seen in surplus

Nickel market seen in surplus

MELBOURNE (Dow Jones): The global nickel market will move into a modest surplus in 2002 after several years in deficit, Peter Johnston, executive general manager nickel at WMC Ltd. (WMC), said on Thursday.

On global supply of 1.12 million metric tons and demand of 1.14 million tons in 2000, he estimates a 20,000-ton deficit this year, thinning to a 10,000-ton deficit in 2001.

But with output rising to 1.229 million tons in 2002 and demand growing to 1.224 million tons, he predicts a small surplus of 5,000 tons in that year.

"Currently, when you look at the market, it appears the price is past the peak and declining, despite their being a small deficit," he told a nickel conference organized by the Australian Journal of Mining and investment concern Salomon Smith Barney.

"Demand is weakening, there appears to be some stainless steel stocks rising, but equally there's no apparent evidence of nickel stocks rising."