By Jason Scott
Oct. 9 (Bloomberg) -- >Minara Resources Ltd., Australia’s second-largest nickel producer, said third-quarter production rose 14 percent, putting it on track to meet its annual target.
Output from the Murrin Murrin mine at Leonora in Western Australia was 8,698 metric tons in the three months ended Sept. 30 from 7,656 tons a year earlier, the Perth-based company controlled by Glencore International AG said today in a statement. The company maintained its full-year production forecast of between 30,000 tons and 34,000 tons.
Prices of nickel, used to strengthen stainless steel, have soared 65 percent this year as China increased consumption. Nickel demand may rise to 1.35 million tons next year, falling short of 1.44 million tons of production, the International Nickel Study Group said yesterday. Demand this year is estimated at 1.21 million tons against production of 1.28 million tons, the Lisbon-based organization said.
“The signs of increased demand for stainless steel in China have continued,” Minara wrote in the statement. “The company remains cautious as official London Metal Exchange stocks have risen to approximately 120,000 tons in recent weeks and the stainless steel markets in Europe and the U.S. remain soft.”
Minara rose 5.8 percent to A$1.00 at 12:17 p.m. in Sydney. Nickel for delivery in three months dropped 1 percent to $19,300 a ton at the same time in Sydney on the LME.
Cobalt production surged 47 percent to a record 754 tons, the company said. Minara owns 60 percent of Murrin Murrin, with Glencore, the world’s largest commodities trader, holding the balance.
To contact the reporter on this story: Jason Scott in Perth at Jscott14@bloomberg.net
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