Here is some information related to the global supply and demand of nickel from the Daily Report on October 19 

o Nickel prices are currently trading at $15.40 per pound, just shy of the all time high and nickel inventories are near historic lows.

o A presentation by Macquarie Research at this year’s LME Dinner indicated that this year’s nickel deficit is 27,000 tonnes.

For 2007, despite nickel being projected to be in a surplus position of 7,000 tonnes, nickel inventories will remain low.

o As with other base metals, China is driving the demand with the growth of its stainless steel consumption. China currently consumes 200,000 tonne a year of nickel and is expected to double consumption within a few years.

o Nickel consumption in 2005 was 1,258,000 tonnes and is forecasted to be 1,377,000 tonnes in 2006. Annual nickel consumption is expected to increase by 419,000 tonnes between 2005 and 2010.

o Nickel supply between 2005 and 2010 is forecasted to increase by 420,000 tonnes. The new production comes mainly from lower grade nickel laterite projects which have higher development costs and producers will need to get around $5-6 pound nickel to generate a return. To meet the forecasted nickel supply profile, there can be no further slippage of new projects such as Goro, Ravensthorpe, Onca Puma, Ramu River, etc.

- From the Daily Report - October 19