Societe Generale analyst sees nickel rebounding in 2010
Tuesday, 20 Oct 2009
Dow Jones Newswires quoted Mr David Wilson metals analyst at Societe Generale SA as saying that nickel prices will likely rally going into 2010 as the market switches into a deficit.
Mr Wilson said at a Societe Generale seminar in London that production cuts and delays to mine projects have helped tighten the market, while stainless steel output is recovering and inventories of ferronickel are low. He added that "We do feel prices are well supported and we don't see a downside for the moment."
Mr Wilson forecast that nickel prices will average USD 20,700 a tonne in 2010, up from an expected average of around USD 15,000 per tonne in 2009.
He estimated about 200,000 tonnes of nickel will be lost because of production cuts, strikes and delays to mine projects in 2009, causing mine output to fall 7.5% on the year.
