Technical Terms

Nickel is a shiny metal, silvery white in color that belongs to the iron group and is used in various fields like engineering, electrical and electronic, automobile etc. It is scientifically symbolized with the help of ‘Ni’ symbol and has 28 as its atomic number in the periodic table. Nickel is a metal that is highly ductile and malleable and also has features like extremely resistant to corrosion, low conductivity of heat and electricity, tough and hard, ferromagnetic etc. Due to these features, the metal is primarily an industrial metal and is required as an important ingredient in over 3000 products.

Overview

Nickel was recognized as a new metal as late as in the eighteenth century. But in this relatively short span of time, it has made its presence significant due to its unique features like ferromagnetic, corrosion free etc. Nickel has proven itself to be a completely industrial metal and has emerged as primary constituent of various other alloys like stainless steel. It is also used in coin currency of various countries in pure or alloy form. The gas that is used as a fuel in turbines and rocket engines also contain nickel as it sustains in high temperatures. The various forms in which nickel is produced and used are ferro- nickel, nickel oxide and other chemical forms. Nickel is one of the five ferromagnetic metals present on earth with Cobalt, Iron, Gadolinium and Dysprosium.

In nature, the metal occurs in the ore form consisting of sulfide, oxide and silicate ores. Around 20 countries in all continents are indulged in the mining of nickel and around 25 countries are indulged in the refining process. Also, nickel is produced through the recycling process. Currently, the world mine production in context of nickel is around 1.4 million tons per year and the plant production of nickel is around 1.25 million tons. Russia is the largest mine producer as well as the largest plant producer of the metal. The world production of nickel is somewhat concentrated and it is clear from the fact that around 55% of the total supply of the metal comes from only five companies. The world consumption level in context of nickel is around 1.15 million tons. The largest consumption centers of the world are European Union and Japan having an annual demands of 3.74 lakh tons and 2 lakh tons. The rate of consumption of nickel is growing steadily with an average rate of 3.1% per year. The major sectors that constitute the demand for the metal are

• Stainless steel sector accounts for the maximum demand for the metal i.e. 65% of the total demand.

• 20% share of demand arises from the other steel and alloys sector.

• The plating sector accounts for 9% of the demand for nickel.

• The remaining 6% nickel is used to make coins and other chemicals.

Continent wise demand for nickel is shown in the list below

• Europe (around 430000 metric tons)

• Asia (around 400000 metric tons)

• America (around 160000 metric tons)

• Former Eastern bloc (around 140000 metric tons)

• Other west (around 48000 metric tons)

The countries that are indulged in the mine production of nickel along with their production figures are

• Russia (315000 metric tons)
• Australia (210000 metric tons)
• Canada  (162756 metric tons)
• Indonesia (143000 metric tons)
• New Caledonia (111895 metric tons)
• Cuba (74018 metric tons)
• Colombia (70844 metric tons)
• China (60000 metric tons)
• Dominican republic (45400 metric tons)
• Brazil (45000 metric tons)

World’s total mine production hovers around 1.4 million tons. As mentioned above, Russia took over Canada’s lead in 1970s and till now Russia has maintained it. The top 5 mine producing countries, mentioned in the list, account for over 65% of the total production. The total mine reserves present are believed to sustain for another 100 more years from now. Regarding the plant production in context of nickel, the annual figures sum up to around 1.25 million metric tons. Russia again leads the list of countries indulging in the plant production of the metal. The production shot up all around the world in the 1990s due to the expansion of the plant capacities of the major existing producers of nickel. The leading nickel metal producing countries with their production figures are

• Russia (260000 metric tons)

• Japan (164500 metric tons)

• Australia (139000 metric tons)

• Canada (124400 metric tons)

• Norway (77000 metric tons)

• China (64700 metric tons)

• Finland (55900 metric tons)

• New Caledonia (50500 metric tons)

Also, a major portion of the total demand for the metal i.e. around 1/4th of the total demand is satisfied by the production in the nickel-recycling sector. Most of the scrap consists of stainless steel scrap that is acquired from the all parts of the globe.

India does not have any history related to the metal nickel. It does not have any resources nor does it indulges in the mine as well as plant production of the metal. But as one of the fastest developing nations of the world, Indian demand for stainless steel and consequently nickel has been rising at a high rate. A rising demand and no production makes the country a total importer of nickel. The country imports around 45 to 50000 tons of nickel annually. This demand is expected to rise in future with the increase in the demand of stainless steel. The government has implied import duties in the import of the metal @ 15%.

Market influencing factors

• World supply of nickel from the scrap

• Discovery of new mines

• Situation in the various industries that contribute to the demand of the metal

• Rise in the world stainless steel consumption

The most important and the biggest market that trades in nickel is London Metal Exchange (LME)

Also, nickel is traded in the Indian commodities market like Multi Commodity Exchange of India, National Commodity and Derivatives Exchange of India and National Multi Commodity Exchange of India.