According to the figures compiled by The Tex Report on the basis of the settlements of accounts for the first half of 2010 released by major nickel producers in the world, the world output of primary nickel in the first half of 2010 increased by 4% YoY to 721,000 tonnes as compared with that of 693,000 tonnes in the same period of 2009.
Since the strikes gone on at the Divisions of Vale Inco in Canada had continued for a long period, the quantity of primary nickel produced in the western world in the first half of 2010 came down to 395,500 tonnes, having decreased by 5.4% compared to that of 417,900 tonnes in the same period of 2009. On the other hand, reflecting a substantial expansion in production of nickel contained pig iron in China, the quantity of nickel produced in the eastern countries, such as Russia, China and so on, in the first half of 2010 had increased by 18.3% to 325,400 tonnes as compared with that of 275,100 tonnes in the same period of 2009.
The quarterly quantities of crude stainless steel produced in the world for the first half of 2010 were 7.8 million tons for January to March quarter, having increased by 16% from that for the same quarter of 2009 and maintained a high level, and also 7.8 million tonnes for April to June quarter, having kept a similar level to that for the preceding quarter of January to March. By taking into account of a scarcity of stainless steel scrap to be generated, the actual demand for nickel in the world is supposed to have fairly maintained a firm tone. The world consumption of nickel in the first half of 2010 turned to a pattern to exceed the supply from February.
The world output of crude stainless steel in July to September quarter of 2010 is anticipated to decrease for seasonal factors and stainless steel companies in such countries as EU, China, South Korea, Japan, Taiwan, and so on, are moving to reduce their production. Accordingly, the world output of crude stainless steel in July to September quarter is forecasted to decrease to a scale of 7 million tonnes. There is a big probability that a global balance on supply and demand of nickel metal will transform to a small oversupply from July to September quarter. In addition, the strikes at the Divisions of Vale Inco in Canada continued for about 12 months were finally called off on July 7th 2010 and, therefore, nickel production at Vale Inco is expected to be resumed at the earliest convenience.
A reduction in production of primary nickel caused by the strikes at Vale Inco had put a considerable influence on the supply situation of nickel in the western world and about 55,000 tonnes of primary nickel are estimated to have been decreased in the first half of 2010 in comparison with that in the same period of 2009. Also, the total quantity of primary nickel reduced by the strikes in Canada for the last 12 months is presumed to be a scale of 110,000 tonnes, having put a considerable impact on the supply situation of nickel in 2009 to 2010.
(Sourced from TEX Report Limited)
