Nickel supply will not keep pace with demandThe Globe and Mail reports in its Wednesday, Feb. 16, edition that Inco expects production to drop and costs to rise in 2005. The Globe's Wendy Stueck writes that Inco, however, believes there will be some relief as prices should remain strong as a result of continued demand from China, a recovery in the worldwide aerospace market and increasing use of nickel in products ranging from power tools to hybrid electric vehicles. And a shortage of new nickel coming on stream -- Inco owns two of three new nickel mines expected to start production within the next two years -- means the company is nicely positioned to benefit from a continuing supply crunch. "In 2005, nickel supply will not keep pace with demand growth," executive vice-president Peter Goudie said Tuesday. "Secondary primary production, stainless scrap and nickel inventories will all be limited by real physical constraints and nickel producers will be unable to provide the nickel required for underlying global demand." Chinese demand is increasing each year by roughly the same amount, 50,000 tonnes, that Inco's Voisey's Bay is expected to produce annually once it comes into production in 2006.