Expect shortage in high-purity nickel after 2018, Sherritt says

A shortage of high-purity nickel is expected to be seen after 2018 because current market prices are below the incentive levels needed to develop new nickel projects, according to Canada-based nickel and cobalt producer Sherritt International.

Demand continues to exceed available supply, the company said, so the nickel market is expected to go into a structural deficit.
This will be despite a continued increase in nickel prices that is being driven by a number of factors, including the continuing drawdown of available inventory.
Combined nickel inventories held by the London Metal Exchange and Shanghai Futures Exchange at the end of the second quarter of 2018 totaled 298,803 tonnes, down by 19% from 367,694 tonnes at the end of the first quarter.

Sherritt noted that the rally in nickel prices was extended into the second quarter, sustaining the...

Published

Andrea Hotter

August 01, 2018

20:10 GMT

New York