The International Nickel Study Group (INSG) met on 5, 6 and 7 October 2009 in Lisbon, Portugal, under the Chairmanship of Mr. Per Z. Brekke (Norway).

About 60 government and industry representatives from Member Countries, including observers and several international organizations, participated in the meetings.

Nickel market observations for 2008, 2009 and 2010

The government and industry participants extensively discussed current nickel market trends. The recovery in stainless steel production started in China, Korea and Taiwan, China in the second quarter of this year and to lesser extent in Europe and the United States in the third quarter. Subsequently, primary nickel demand was strong in China and surrounding countries, with both real and apparent consumption increasing in that area. In Europe and the United States demand is expected to decline this year due to weak stainless steel production and also relatively high usage of nickel-containing scrap. In 2010 it is possible that growth in stainless steel and nickel use will continue in China and in other parts of the world but at slower rate.

World primary refined nickel production was 1.38 Mt in 2008, and declined to 1.28 Mt in 2009. In 2010 production is anticipated to increase to 1.44 Mt. The 2009 and 2010 figures do not include any general adjustment factor for possible production disruptions. World primary nickel usage was 1.29 Mt in 2008, and decreased to 1.21 Mt in 2009. For 2010 a recovery to 1.35Mt is envisaged.

INSG recognizes that the current global economic crisis has created a large degree of uncertainty in the global market, and its impacts on both the supply and demand for nickel are still not fully known. Again, the Study Group cautions that future market developments could significantly alter the forward-looking market balance.

Statistics Committee

The Statistics Committee received valuable input to its work through a series of presentations and discussions.

Mr. Markus Moll, Managing Director & Senior Market Analyst of SMR: Steel & Metals Research, Austria, made a presentation on “Market drivers for Nickel-alloys”.

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