Nickel prices have rebounded after last week fell to a low of nearly seven years, amid speculation the heavily indebted miner Glencore after cutting its output of copper and zinc, or nickel output will be suppressed.
Glencore but the world's fifth largest nickel producer, the operations in Australia, Canada, Norway, New Caledonia and Dominica, the majority of the assets of its 2013 acquisition of Xstrata (Xstrata) obtained after.
Glencore may refuse to comment on the speculation. The company shares due to fears that its debt burden who were suppressed.
Minelife commodities analyst Gavin Wendt said, "In the nickel market, and of copper and zinc, as Glencore cuts could have a huge impact."
"Not only to investors and bankers Glencore pass the correct information, but also saves money for the company, perhaps in the production process can boost nickel prices."
Three-month nickel on Tuesday in London to $ 10,460 a tonne, compared with August 12 hit low since December 2008 up 15% to $ 9,100.
LME nickel inventories currently up to 44 tons, the market volume was 2 million tons per year.
UBS analyst Daniel Morgan expects the price of today's computing by nearly 50% of global nickel output are at a loss, this is a very extreme phenomenon minerals.
"Nevertheless, the closed mines are few, compared to other commodities, such reaction is the worst," Morgan said in a report, adding that if the manufacturers to reduce the supply, prices will be very supportive.
By far the largest rate cut in Canada to count Sherritt International. The company in July 2015 nickel output will target ten thousand tons from the previous forecast of 8-8.6 reduced to 7.8-8.2 million tons.
Glencore nickel business performed poorly, worse than copper and zinc.
Nickel production sector in the first half revenue fell 25% over the same period revenues of copper and zinc sector decreased by 12% and 8%, respectively.
Copper prices rebounded from lows in September for six years, before Glencore represent and copper mine in the Democratic Republic of Congo, Zambia operations will be suspended for 18 months, so that the market supply will be reduced by 400,000 tons.
On Friday zinc price rose 10 percent, the highest in at least 10 years, the biggest single-day gain. Glencore had said it would cut zinc production of 500,000 tons, equivalent to 4 percent of the global supply.
"Copper and zinc price trend implies that Glencore or will be treated the same way as the nickel assets," commodities analyst Daniel Hynes said.
Glencore trying to cut one third of the $ 30 billion debt, showing that no longer need to abandon the ruthless ambition nickel assets.
The company in June to Cosmos nickel ore sold to 24.5 million Australian dollars, this is only Xstrata in 2008 to A $ 3.1 billion acquisition of its then owner Jubilee Mines fraction.