Xstrata shuts Falcondo as oil, nickel prices bite

摘要

Xstrata is suspending production at its 29,000 tpy nickel operation Falconbridge Dominicana (Falcondo) in the Dominican Republic for four months due to high oil and low nickel prices. The move, which analysts had been expecting for some time (MB Aug 18), could help push US premiums higher in the next few weeks, even as the European market stays sluggish amid weak demand from stainless steel makers and plentiful supply. A large portion of Falcondo's nickel is sold into the USA, where the physical market is likely to reap the benefits of the closure, market participants said.