praveen
13-06-2008, 06:22 AM
Nickel prices surged by over 5% across the globe on Thursday, after the Australian smelter BHP Billiton said it would close its operation for four months for repairs months. This would reduce supplies by approximately 28,000 tonne, and could possibly offset the expected surplus in the metal this year, said analysts.
India’s imports of nickel had gone up significantly in the past year due to booming demand for stainless steel. Surendra Mardia from Bombay Metal Exchange said: “It’s too early to tell. Nickel prices have been on a downtrend due to expectations of comfortable supply. In event of supply shortage, stainless steel industry would suffer.”
Analysts, however, expect that the strong downward trend seen in the metal could be the only factor holding back nickel prices from rising dramatically.
India’s imports of nickel had gone up significantly in the past year due to booming demand for stainless steel. Surendra Mardia from Bombay Metal Exchange said: “It’s too early to tell. Nickel prices have been on a downtrend due to expectations of comfortable supply. In event of supply shortage, stainless steel industry would suffer.”
Analysts, however, expect that the strong downward trend seen in the metal could be the only factor holding back nickel prices from rising dramatically.