An unusual double-peak in the current metals price cycle is being experienced by nickel, with the cash price of the metal at presstime hitting $9.16(US) per lb (with a 3- month price of $8.12) on the London Metal Exchange and promising to go higher. In March of this year, the base metal, which averaged $2.21 in 1987, reached a record $10.84.
Latest news to affect the already tight world nickel market is a transformer failure at the P. T. Inco mining and smelting operation in Indonesia run by Inco Ltd. (TSE). The transformer could be out of action for as long as five months, with the loss in production amounting to one million lb nickel per month.
An Inco spokesman in Toronto said the transformer knocked out one of the three furnaces at the Indonesian facility; the furnace is working again but only at half- capacity. A new transformer already on order is set for delivery in May or June. The spokesman said the company hopes to be able to pick up the production slack at its other operations.
In Australia, reports continue about the production and ore- supply problems of Western Mining Corp., troubles which may persist until April.
Also, there have been stories of producers overselling their nickel production to customers.
The major market for nickel is the booming stainless steel industry and reports abound about a shortage of stainless steel and other nickel-bearing scrap.
Reporting a 7% increase in global nickel production this year, and projecting a 4% rise in 1989, is Metals & Minerals Research Services of London. The company says the stock-consumption ratio is expected to revert to 1984-85 levels during the next 12 months. file: INSIDER INSIDER TRADES
Agassiz — P. Bannerman bought 33,000 (Oct) @ $3.30-40 to hold 334,050.
Burgess Point — Perton Dev bought 30,000 (Nov, private) @ 10 to hold 583,313.
Campbell Res — R. Lister bought 25,100 (Nov) @ US75 -87 to hold 466,727.
Casabar — M. Barrett sold 100,000 (May/87, amended) to hold nil.
Citadel — Sherfam Ind bought 708,644 (Oct, Nov) @ $2.35-40 to hold 2,880,844.
Cornucopia — J. Nantel sold 10,500 @ $2.35- 40 to hold 7,600.
Corona — J. Donovan bought 3,930 class A shares (Nov) @ $12.72 to hold 3,930 and also holds 8,600 (amended) class B shares. J. Ivany bought 1,965 class A shares (Nov, private) @ $12.72 to hold same. M. Pezim sold 6,000 (Oct, amended) to hold nil. A. Walsh bought 3,930 (Nov, private) @ $12.72 to hold 36,672.
Euro-Nevada — Nevada Capital bought 50,000 (Nov) @ $4.10 to hold 1,556,660.
Franco-Nevada — Nevada Capital bought 150,000 (Nov) @ $7.62 to hold 1,806,000.
Gldn Briar — M. McLeod sold 20,000 (Nov) @ 12 to hold 624,800.
Gldn Star — D. Fennell bought 24,100 (Nov) @ $2.45-$3 to hold 773,020.
Hemlo Gold — Whitshed Ltd. sold 10,000 (Oct) @ $22.69 to hold nil.
Houston Metals — Equity Preservation Corp sold 63,000 (Nov) @ 20 -22 to hold 970,461.
Muscocho — Echo Bay Mines bought 36,000 (Nov) @ $4 to hold 8,882,291.
Be the first to comment on "Nickel prices skyrocket while platinum plummets"