The CEO of Inco Ltd., delivered good news to the New York business community Thursday.
In a speech to the Metals Analysts Group of New York, Scott Hand said the strength in nickel demand, which began in March has continued, resulting in slightly over a 6 per cent year-over-year growth in the first half of 2002.
The drivers of this increase in demand include the Asian stainless steel markets, the Japanese nickel alloys industry and a recovery in the markets for nickel powders.
He noted the current uncertain economic environment in North America and Europe, and the uncertainties related to Iraq are expected to have some impact on demand in the current quarter.
However, the company believes nickel demand growth should still average slightly over 6 per cent for the rest of the year.
Unlike a number of other non-ferrous metals industries, Inco believes the nickel industry is currently operating at capacity and that overall nickel inventories are stable, he said.
Hand also outlined the current plan to complete a bankable feasibility study for the initial phase of its Voisey?s Bay nickel-copper-cobalt project, involving the mine and concentrator and related facilities, by the end of 2002.
Hand said with nickel at $3 (US) per pound, the company generates about $150 million (US) of free cash flow a year after providing for about $185 to 190 million in annual sustaining capital expenditures at the company?s existing operations and currently expected increased pension contributions and expenses.
