Inco sees nickel prices to keep increasing

Against the backdrop of surging global nickel prices, world No. 2 nickel producer, Inco Ltd., said on Friday it expects prices to top out over the next two years.

"We believe 2004 and 2005 will be the market peak," Inco marketing head Peter Goudie.

Despite a 75 percent price surge already this year, Goudie said the metal would continue upward as an economic recovery in the West stimulated demand, Chinese appetite remained robust and a dearth of fresh supply persisted.

Goudie was addressing analysts in Toronto.

Nickel was unchanged at $12,740 a tonne on the London Metal Exchange on Friday. Goudie said the metal, used to make stainless steel, was more than $5,000 a tonne firmer than when he spoke to the same group of analysts a year ago.

He said many analysts' nickel price forecasts for 2004 were still below current market levels and he urged them to up their estimates.(*)