Nickel/More production cuts likely at below 18,000 dollars/t

摘要

The cost structure of the nickel industry has altered markedly over the last year as the rocketing prices of sulphur and energy have lifted cash operating costs for marginal producers to around 17,000-18,000 dollars/t. If prices fall into this range again in the coming weeks, another 30,000t of nickel output could be under threat in the fourth quarter, over and above those cutbacks that have already been implemented. But it is not just falling prices and high operating costs that are prompting production cuts. Weak physical demand has also been cited as a contributory factor.