Nickel market facing deficit this year, surplus in 2006: Natexis

摘要

London—The nickel market is likely to see a 5,000mt supply deficit this year before reverting to a 10.000mt surplus in 2006, London Metal Exchange ring-dealer Natexis Commodity markets said in its second-quarter 2005 Metals Review. This marks a departure from the company's Q1 review, which forecast a 5,000mt surplus for 2005. "Given stronger than expected Chinese imports and reports from Inco of lower output and confirmation from Norilsk of flat output this year, our forecast has now been revised to a 5,000mt deficit," Natexis said, adding: "Inventory levels that were already at low levels in 2004 have been placed under greater pressure." The company has also raised its base case cash price forecast in 2005 to $14,000/mt from $ll,875/mt, but warned that "current prices are so far in excess of the production costs, there is the potential for a massive correction when the market finally eases."