Yahoo! News – Nickel Strong Despite Falconbridge Deal: “they said dwindling stocks were compounding a global shortage of the metal, used mainly in the production of stainless steel. This would keep prices close to double their levels a year ago and close to a 14-1/2-year peak reached last month”
Industry analysts expect the global shortage of nickel to continue until at least 2006, when new capacity is scheduled to come on stream in Canada and New Caledonia.
“Actual consumption this year will not be sufficient to meet underlying demand for nickel, especially from booming stainless steel production in China,” AME’s Barkas said.