Nickel Supply Cuts "Rapid And Significant" - Xstrata

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LONDON -(Dow Jones)- The nickel industry has made "particularly rapid and
significant" efforts to cut production in response to deteriorating demand with
around 350,000 metric tons of refined output being taken out of the market in
2009, Anglo-Swiss miner Xstrata PLC (XTA.LN) said Thursday.


This represents approximately 21% of the previously expected level of global
supply in 2009, and is expected to stabilize the market this year, Xstrata
noted.


In addition, growth projects and exploration expenditure continue to be
canceled or deferred, Xstrata said, and this is introducing significant
constraints to future supply.


But while the supply side response continues to gain momentum, production
curtailments in the fourth quarter were not sufficient to fully mitigate the
impact of the sharp fall in demand, the company added.