| Abstract: | The average LME nickel price in 1988 was $6.26/lb and in 1989 was $6.00/lb. This contrasts with an average price of $2.11/lb over the period 1982–87. The reasons for this run up on price include increased demand for stainless steel (the largest use of nickel), reflecting the period of sustained economic growth in the OECD countries, and the decline in market stocks which reached unusually low levels in 1987 and 1988. Forecasts of nickel supply and demand for 1990 and beyond are presented and the need for additional capacity estimated. In general new greenfield capacity will not be needed until the late 1990s. |
