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The Jakarata Post reported that Nicolaas Kanter of PT Vale Indonesia (OTC Pink:PTNDY) said that declining nickel prices may result in his company having negative cash flow until the end of the year.
The Jakarata Post reported that Nicolaas Kanter of PT Vale Indonesia (OTC Pink:PTNDY) said that declining nickel prices may result in his company having negative cash flow until the end of the year.
As quoted in the market news:
‘Initially, we hoped that nickel prices would improve. During the last two weeks, however, the price has declined to Rp 13,000 per kg. It means that Vale’s cash flow will be minus at the end of this year,’ [Kanter] said.
The drop in the nickel price in global markets has been triggered by the European financial crisis. Furthermore, China, as one of the largest markets for nickel, is currently experiencing an oversupply, causing less demand for nickel.