Aneka Sees 30 Percent Fall In Nickel Demand

Alwin Syah Loebis, president director of PT Aneka Tambang, Indonesia’s second-largest nickel producer, expects global consumption to fall 30 percent this year as the world recession slows demand and steel mills reduce output.

Steelmakers are running at about 50 percent capacity, said Mr Loebis in an interview at the company’s headquarters in South Jakarta.

Nickel dropped 59 percent in the past year as demand from automakers and construction companies collapsed. China, which plans a 4 trillion yuan ($585 billion) stimulus package of infrastructure spending, yesterday reported its economy grew 6.8 percent in the fourth quarter, the slowest pace in seven years.

“Because of the current China condition, our exports to China dropped,” Mr Loebis said, “China may see a little increase in demand this year on its infrastructure focus, but they may fill this need domestically.”