Metals markets softening

Petroleum News Staff

Growing concerns about the global economy will put copper and zinc prices under pressure, although several factors will lead to better nickel prices, said Aaron Regent, chief executive officer of Falconbridge.

“The leading indicators are weakening and ultimately we need to see an improvement in global industrial production to see a sustained improvement in metal prices,” he told the Toronto-based mining giant’s annual meeting April 17.

Regent said nickel prices have improved by 36 percent from last year to US$3.65 a pound during the first quarter and should remain robust as global stockpiles of newly minted nickel shrink while supply on the scrap market is wiped out.

Like Inco, he said China’s demand for nickel is growing by 25 percent a year and stainless steel production capacity is forecast to expand by 15 percent over the next two years.