consumption, it is argued. On the price
front, analysts at Standard Chartered
point to supply outstripping demand as
the main factor likely to lead to lower
nickel prices in the second half of 2008.
Having averaged US$ 27 900 per tonne
in the second quarter, values are expect-
ed to sink to an average of US$ 24 000
in the third quarter and US$ 22 000 in
the final three months of the year.
Nickel & Stainless
lion tonnes – with much of the upward
momentum provided by mills in Asia.
The upturn is attributed to growing
industrial consumption although sharp-
ly rising production costs could dent
advertisement
activity levels in the US and European
stainless steel markets.
North America
The International Stainless Steel Forum
is predicting a global production
in crease of around 6% this year – which
would give a total of some 29.32 mil-
Most special alloy prices are firm owing
to higher demand and production cuts
in China.
Stainless steel mills in China are in
need of nickel ore and ferro-nickel,
while at the same time ferro-chrome
prices have reached new highs mainly
as a result of the devastating earthqua-
ke in the key producing region of Sichu-
an. Another factor is the strong growth
in the Chinese stainless steel industry.
With continuing power shortages and
unrest in South Africa forcing ferro-
chrome producers to run at less than
90% capacity, April and May witnessed
a considerable price increase to around
US$ 3.00 per lb for low-carbon FeCr.
Rumours are circulating that new con-
tracts may be settled at up to US$ 3.50
per lb and higher owing to the deficit
aggravated by the above-mentioned
production cuts in China.
Ferro-molybdenum prices were stable
in May and remain around US$ 77.50
per kg.
Ferro-vanadium prices have increased
owing to buyers’ nervousness surroun-
ding tight and, in some cases, interrup-
ted supplies. Having traded at US$ 69
per kg in April, the price climbed
be yond US$ 80 per kg in May and June.
Rotterdam warehouses are re porting
very little incoming material
The ferro-tungsten market has firmed
on the back of a supply squeeze in
Europe, with material containing 75%
tungsten exceeding US$ 36 per kg. Chi-
nese material has been slightly cheaper
Ferro-titanium prices fell slightly in June
to US$ 8.80 per kg.
Low-grade cobalt firmed in May as
prompt material became scarce. Chi-
nese consumption is expected to grow
more than 10% this year whereas the
country’s refined cobalt production is
falling and stocks are low. Prices incre-
ased to US$ 49 per lb and forward sel-
ling has produced even higher prices
owing to healthy demand for batteries,
power tools, lap-tops, mobiles and
hybrid electric vehicles.
Special alloys
MILESTONE METALS INC.
RI_035 MA-Stainless.indd 3 19-06-2008 14:57:41
