December 03, 2008

Miming delays shift focus to nickel pig iron

Herald News Services reported that delays at nickel mines around the world will force big industrial consumers like stainless steel makers to rely on low grade nickel pig iron for years.

Mr David Humphreys chief economist at Norilsk Nickel, the world's biggest producer of the metal said that nickel pig iron, a lower grade nickel that has become a key supply source for the stainless steel sector, will continue to play a big role for the foreseeable future. He added that "It is essentially a stop gap measure. Having said that the measure will be around for quite a time to come.”

He added that "Certainly for the moment, it is required in the market."

Nickel pig iron output is estimated to have risen to around 100,000 tonnes in 2007 from about 30,000 tonnes a year earlier.