Nickel Watch - LME stocks depleting fast !!The latest - Stocks are disappearing fast - shaping up for another shortage. Annoying that although price per lbs is going up, Inco just cant keep up the production levels to maximize profits. Good news on N share price though, so glad I picked up some more at just over $40 on the last dip. I guess all the short sellers and hedge fund yo-yos are covering their bets now.
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Nickel Watch
Information listed below is courtesy of The Stainless Steel News.
02-16-2005 Inco warned investors that their record production of nickel in 2004 of 522 million pounds of nickel could fall to between 490 and 500 million pounds in 2005 due to maintenance shutdowns. The also announced the much anticipated Voisey Bay project is 6 months ahead of schedule but are still unable to give a date when the mine will start producing. LME nickel took another huge hit yesterday with an additional 594 tons being taken out of LME warehouses, leaving 13,068 tons.
02-15-2005 LME nickel closes at $7.07lb... it's first time closing over $7.00lb for some time. Inco's profits nearly tripled in the 4th quarter of 2004. For the year net earnings were $612 million compared to $153 million in 2003. Inco is the world's second largest producer of nickel. Inco's report also predicts demand in China and increased demand in the global aerospace industry will keep prices high in 2005. LME nickel inventories fell below 14M tons after 426 tons were taken out Monday leaving a total of 13,662 tons.
02-14-2005 LME nickel closed at $6.89lb. Bulls still say there is plenty of steam left (article) Molybdenum continues to slide - now at $26.20lb. China's State Council Development and Research Center predicts China's economy will grow at approximately 8% per year for the next 5 years. Scrap magazine quoting Barclays Capital as stating nickel inventories held by stainless steel producers "very low" especially in China. If true, this will put further upward pressure on nickel prices. LME nickel inventories fell another 504 tons Friday, now totaling 14,088 tons.
02-11-2005 LME nickel rose to as high as $7.12lb today before producers took profits. LME nickel ended the week at $6.93lb. Nickel inventories on the LME took a huge hit yesterday, dropping by 570 tons to total 14,592 tons.
02-10-2005 Dollars weakens and nickel hits 6 week high, closing at $6.96lb. Nickel inventories in LME warehouses continues to slide, dropping another 252 tons to total 15,162 tons.
02-09-2005 LME nickel closed at $6.86lb. Happy Chinese New Year - it is the Year of the Rooster. LME nickel fell by another 258 tons Tuesday to total 15,414 tons.
02-08-2005 LME nickel closed at $6.88lb. LME nickel inventories slipped by 48 tons to total 15,672 tons.
02-07-2005 LME nickel closes the day at $6.67lb. Molybdenum drops to $29.00lb. Yieh is reporting iron ore prices in China increased 7% in January. They also advised 304 stainless steel cold roll increased marginally. LME nickel inventories continued to slide Friday, dropping another 138 tons to total 15,720 tons.
02-03-2005 LME nickel closed the day at $6.69lb. The US Fed raised interest rates by another 1/4 point yesterday, the sixth such increase in the last seven months. Falconbridge received favorable news on Tuesday with its annual profits for 2004 soaring, but with the good, comes the bad. Production of refined nickel slumped in 2004 by 3,500 metric tons in a year when prices were double the prior year. Operating costs for the company averaged $2.93lb, up from $2.78lb the prior year. And most disturbing, the massive Koniambo nickel deposit in New Caledonia is now estimated to cost the company an estimated $2 billion to develop, an increase of nearly 38% from prior estimates. If the company decides to proceed, production is now estimated to begin in 2009 or 2010. Another mega project in New Caledonia, the Goro Project by Inco, is scheduled to begin producing nickel in Sept., 2007. Another 240 tons were taken from LME warehouses yesterday, leaving a total of 16,110 tons on hand.
02-02-2005 LME nickel closes at $6.60lb. Nickel inventories continue to fall in LME warehouses - dropping another 294 tons to total 16,350 tons.
02-01-2005 LME nickel closed the day at $6.60lb. LME nickel inventories slipped below 17,000 tons with a loss of 390 tons. LME warehouses now show 16,644 tons on hand.