Nickel/Stocks exceptionally low for start of 2007

摘要

Though demand for nickel has passed its peak, tight supply should continue to support LME nickel prices at high levels. As the current year draws to a close, the single most notable difference between this year and last is the complete absence of any sizeable stocks of nickel. Inventory on the LME remains at a paltry 5,660 tonnes and producer, trader and consumer stocks have also been pared back to some of the lowest levels on record. In total, it is estimated that industry stocks of nickel represent just 7.5 weeks of consumption, down from 11.5 weeks at end-2005. This suggests that there is virtually no spare primary nickel available if demand proves stronger than anticipated in Q1 2007.