Steady stainless

Recycling Today, Oct, 2004

Although nickel producers have some new mining projects underway, the current tilt toward more demand than supply could stay in place in the nickel sector through 2005.

A panel of speakers assembled at the Pittsburgh Chapter of the Institute of Scrap Recycling Industries Inc. (ISRI) annual Nickel-Stainless Roundtable said demand from China and reviving U.S. and Japanese economies should keep nickel prices aloft and demand strong for stainless steel scrap.

"The outlook for nickel is still fundamentally strong for the next two years," said John Vorberger, sales and marketing manager of special products with Eramet North America, Coraopolis, Pa.

The production of mined nickel ore is not scheduled to increase until 2006, when an expansion of Eramet's mine and smelter in New Caledonia will be complete. Between 2007 and 2010, two major production facilities--including Inco's Voisey Bay project in Canada--should help boost the supply of nickel ore.

Former nickel trader Martin Abbott, now publisher of American Metal Market, New York, said several potential problems could cause nickel demand and pricing to recede in the next several years, though emerging industrial economies in China and India remain formidable growth factors.

By and large, Abbott said these are enjoyable times for metals companies. "Now, finally, it's worth investing in metals again. The industry is catching up after [several] years of underperformance."

(Additional news about nonferrous scrap, including breaking news and consuming industry reports, is available online at www.RecyclingToday.com.)