Tight supplies continue to keep the price of nickel high, although some weakening in the spot price was experienced recently after the base metal set a record $10.84(US) per lb on the London Metal Exchange (lme).
Nickel inventories on the London exchange are said to be extremely low. Countering the effect of the decreased stocks are a number of events, including the recent return to the job of striking workers at Western Mining’s Kambalda mine in western Australia and a reported prolonged discussion by Japanese government officials over a strategic stockpile of nickel earmarked for Japanese industry.
The dispute between the Dominican Republic and Falconbridge Ltd. over an export tax on ferronickel shipments continues. Falconbridge is still producing ferronickel but is stockpiling its output, only occasionally shipping the ferronickel to customers.
Two recent shipments brought to six the number of shipments made by Falconbridge since the trouble with the Dominican Republic government began in mid- December. Falconbridge is estimated to have more than 12 million lb of the metal stockpiled in the country.
Looking ahead, Christopher Hansen of Sherritt Metals Marketing says the labor contract for Inco Ltd.’s Sudbury workers will expire at the end of May.
At presstime, nickel was selling for $9.09 on the LME.
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