Globe says FL strike not likely to boost nickel prices
Falconbridge Ltd FL
Shares issued 177,041,400 Aug 1 close $16.85
Wed 2 Aug 2000 In the News
Also Inco Ltd (N)
The Globe and Mail reports in its Wednesday, Aug. 2, edition that nickel
prices are perplexing. The Globe's Vox column reports that not even a
strike by Falconbridge's miners in Sudbury, Ont., could boost prices for
the metal. In fact, nickel fell five U.S. cents yesterday to $3.45 a pound
on the London Metal Exchange. Sadly for nickel producers, just over two
months ago nickel was selling at $4.80 a pound or close to a 10-year high.
Inventories remain at more than eight year lows, demand is strong and Inco,
the world's largest nickel producer, reports that markets have seldom
looked better. The betting now is that a temporary slowdown in the third
quarter will soon end, and business will pick up again in the fourth
quarter. But it could be that the good times are over, and that the
incredibly strong demand that drove prices up was just a result of
stainless steel producers restocking, and now that is over. If that is
true, inventories will rise and the hope will be that prices do not fall
any further, says The Globe. |
