Inco Sudbury comes on to the horizon

摘要

Nickel production has been characterized by a succession of minor disruptions and shortfalls in the past year. Taken together these have nibbled at supply, rather than bitten into it, but they have offset some of the impact of the downturn in the stainless sector in the second half of 2005. Recent weeks have seen the closure of the Sally Malay open pit, and labour stoppages have hit the Falconbridge operation in the Dominican Republic. So far Falcondo has been able to maintain production and is shipping to customers. Much more significant in impact would be the threat of disruption at Inco's Sudbury operation in a few months' time. Major labour contracts are due for renewal in May, and failure to agree terms could trigger strike action. There are no useful predictions as to the likely outcome, but players will undoubtedly be taking up positions in the nickel market as the event draws closer.