Bloomberg News

Vale Expects Nickel Demand to Remain ‘Weak,’ Credit Suisse Says

January 29, 2009

Cia. Vale do Rio Doce, the world’s second-biggest nickel producer, expects demand for the steelmaking ingredient to stay “weak” after an 84 percent decline in price, Credit Suisse Group AG said.

A drop in global stainless steel production and lower demand for other alloy steels may hurt nickel, Credit Suisse said, citing a company presentation at a conference. Chinese consumption will be “critical” to boosting steel demand, with the country’s stimulus plan increasing consumption by 50 megatons in 2009, analyst Roger Downey wrote. Nickel has fallen 84 percent in the past 16 months, he said.

Talk to settle iron-ore contract prices for 2009 “could surprise the market on the upside,” the analyst wrote, citing a drop in Chinese ore inventories.

The company said January ore shipments “show a slight recovery” from December, Downey said.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at Papadopoulos@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus