- Nickel is used in various industries such as engineering, electrical, & electronics, infrastructure, automobile & automobile components, packaging, batteries etc.
- Among all Basemetals, Nickel is the most volatile owing to its strong demand & tight supply.
- Nickel demand is derived demand based on growth of different industrial sector thus exhibits high volatility.
- 65% of nickel is used in manufacturing of stainless steels & 20% in other steel & non-ferrous including “Super” alloys; often for highly specialized industrial, aerospace & military applications.
- More than 54%, if world total supply comes from only five companies.
- Global nickel consumption is growing by an average 3% a year.
Supply & Demand:
- Major producers of nickel are Russia, Australia, New Caledonia, Canada, and Indonesia, which represents over 65% of total world production.
- World primary nickel consumption is about 1million tons. Consumption centres are Japan 2 Lakh tons & European Union 3.74 Lakh tons.
- Rapid expansion of global stainless steel production is fuelling demand for primary nickel.
Important Nickel Market:
- LME- London Metal Exchange
Indian Nickel Market:
- Nickel Market in India is of total import dependent.
- India Imports around 30,000 tons of Nickel.
- Import duty on nickel is 15%.
- With the growth in the stainless steel sector. Nickel import demand is expected to increase in coming years.
Frequency distribution of Nickel at LME:
|% Change > 5 2.5% 2%|
|% Terms 2% 21.9% 76%|
Factors influencing Nickel Markets:
- Above ground supply from scrap.
- New mines discovery.
- Nickel demand is derived demand thus the situation in various industries.
- Growth in consumption of stainless steel.