Supply side issues still underpin market

摘要

As outlined above, despite a relatively negative demand outlook, supply side issues are still suggesting that nickel prices have the potential to increase over the remainder of the year. Latest reports concerning the strike at Falconbridge's Sudbury operations indicate that no meetings between the Canadian Autoworkers union (CAW) and Falconbridge management have been planned. Indeed the dispute has turned somewhat acrimonious with the company threatening legal action against the striking workers if they continue to disrupt the partial production that has been continuing at the plant. However, Falconbridge has indicated that all nickel customer commitments are being met, and will continue so throughout October/November. Given these reports, MBR does not expect to see a resolution to the strike until early December, at the earliest.