Eramet Forecasts Global Nickel Oversupply in 2008

Patrick Buffet, Chairman and Chief Executive Officer of Eramet, France, attended a press conference held at a hotel in Tokyo, Japan, on 3 July and gave a presentation that global nickel supply may become surplus by 20,000 tonnes through 2008. The global supply is estimated to become over against the demand for 2 years in a row while the oversupply range would narrow by 48,000 tonnes from 68,000 tonnes in 2007.Mr. Buffet said the global nickel production is estimated at 1.455 million tonnes in 2008, increasing by 1.3% from 2007. The growth would be slow when Australian smelter is scheduled to enter furnace maintenance though the productive capacity will increase widely thanks to the output start at BHP Billiton’s Ravensthorpe mine in Australia.He explained the global apparent consumption would increase by 4.9% to 1.435 million tonnes through 2008 from 2007. The positive factor is that the global production of stainless steel could increase by 7.4% year-on-year in 2008. The negative factor is Chinese output condition of nickel pig iron, according to Eramet.Mr. Buffet also referred to Weda Bay project in Indonesia. He revealed the total reserve was recently confirmed at 4.8 million tonnes of nickel by exploration activities, increasing from previously estimated 4.1 million tonnes. The project targets annual nickel output at 60,000 tonnes. The development schedule is pre-FS in 2008, FS in 2009 and the production start in 2013.