Home / Metal News / How Will Strike at Cerro Matoso Nickel Mine Affect Nickel Price?

How Will Strike at Cerro Matoso Nickel Mine Affect Nickel Price?

iconMay 31, 2016 11:28
Source:SMM
A strike at the Cerro Matoso nickel mine, global second largest ferro-nickel mine which is owned by South32.

SHANGHAI, May 31 (SMM) - A strike at the Cerro Matoso nickel mine, global second largest ferro-nickel mine which is owned by South32, is expected to break out before June 14 due to salary dispute. How will this affect nickel prices?

SMM reckons nickel price will be bolstered by the strike news. LME nickel should find support from $8,330 per tonne, and September nickel on the SHFE will be underpinned at 66,500 yuan per tonne.

“Workers at the mine took strike action on April 14, 2015, which lasted for 17 days. The strike, combined with other positive factors, including expectations of falling NPI supplies from China and improving demand, drove up LME nickel to $14,585 per tonne at one point during mid-to-late April and early May, 2015,”said one SMM nickel analyst.

Cerro Matoso’s nickel production reached 9,700 tonnes during January-March 2016, up 10.23% month-on-month, according to SMM statistics. The company’s output grew after maintenance. But output was down 8.49% year-on-year during the same period due to lower nickel ore grade. Its monthly nickel output is 3,000-4,000 tonnes, SMM estimates, equivalent to about 2% global primary nickel supply.

SMM understands Cerro Matoso plans to slash cost by 30% starting 2017 fiscal year and will lay off 350 staffs and contractors.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn. 


 

 


Cerro Matoso
nickel price
South32
LME nickel
SHFE nickel prices

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All