Steelmakers’ search for nickel substitute in hiatus

Nickel Investing News reports nickel prices fell almost 80% in less than two years,

In the meantime, it is going to take time for the nickel industry to adjust to the current economy. The global nickel market will be in an 80,000 tonnes surplus in 2009, as falling demand continues to outpace cutbacks made by producers, the International Nickel Study Group (INSG) said. The Lisbon-based group said it expected world production to fall to 1.26 million tonnes this year and consumption to 1.18 million tonnes. In October, the group predicted an 110,000 tonne surplus; since then a swathe of producers have announced cutbacks in response to poor demand. The group said primary nickel output last year was 1.39 million tonnes, down from 1.42 million in 2007. Global primary nickel usage was 1.29 million in 2008, compared with 1.31 million tonnes in 2007.