Minara cautious about world nickel prices October 10, 2009 Article from: Australian Associated Press AUSTRALIA'S second-largest nickel producer, Minara Resources, remains cautious about where prices are headed because inventories are high and stainless steel markets in Europe and the US are soft.
Minara's share of nickel production at its Murrin Murrin mine in Western Australia rose 10.92 per cent in the September quarter from the same period a year earlier to 5219 tonnes, it said.
Minara said its share of cobalt production rose 18.94 per cent to 452 tonnes in the same period.
But the company warned in its production report of an uncertain outlook for nickel prices.
"The nickel market improved during the quarter with nickel spot prices ranging from $US15,755 per tonne on July 1, 2009, to a peak of $US21,070 before closing the reporting period at $US17,355," Minara said.
"Despite the price improvement, the company remains cautious as official London Metal Exchange stocks have risen to approximately 120,000 tonnes in recent weeks and the stainless steel markets in Europe and the US remain soft," it said.
"The signs of increased demand for stainless steel in China have continued with consumption primarily being attributed to domestic purposes."
Minara said the price of cobalt remained volatile and ranged during the quarter between about $US15/lb and $US17.50/lb.
MRE Price at posting:
$1.00 Sentiment: Buy Disclosure: Held
