Nickel Scenario

Nickel:

Major Characteristics:

  • 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.

Global Scenario:

  • 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.