MOSCOW (Commodity Online): Norilsk Nickel has stated that they expect higher Nickel output for 2012. Norilsk Nickel is the largest producer of nickel and palladium in the world.
The company expects total nickel production to be around 295,000 tonnes- 305,000 tonnes for the year. 2011 production was at 295,000 tonnes, down 0.8% from the 2010 output.
Analysts are also expecting nickel prices to recover and perform well in 2012. "We believe that nickel prices will rise sharply, but they should be well supported between $18,000-20,000/tonne, suggesting an average for the year of perhaps $22,000/tons”, Natixis says
However, the nickel market will be dependent on the steel sector, which accounts for about 60%-70% of total consumption. And the steel sector, is in turn, dependent on its largest consumer China. Zhu Jimin, Chairman of China Iron and Steel Association expects Chinese consumption to grow by 4% to 700 million MT in 2012.
