* Nickel finds its usage in various industries such as engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging, Batteries etc.
* Among base metals Nickel is the most volatile owing to its strong demand and tight supply.
* Nickel demand is derived demand based on the growth of different industrial sector thus exhibits high volatility.
* About 65 per cent of nickel is used in manufacture of stainless steels, and 20 per cent in other steel and non-ferrous including "super" alloys, often for highly specialized industrial, aerospace and military applications.



Characteristics of World Nickel Market

* Nickel world market is characterized by rising demand and constrained supply.
* More than 54% if world total supply comes from only five companies.
* Global nickel consumption is growing by an average 3.1 per cent a year.

Supply and Demand

* Major producers of Nickel are Russia, followed by Australia, Canada, New Caledonia and Indonesia, which represents over 65% of total world production.
* World primary nickel consumption is about 1 million tons. Consumption centers are Japan 2 lakh tons and European Union 3.74 lakh tons.
* Rapid expansion of global stainless steel production is fuelling demand for primary nickel.

Important World Nickel Markets

* 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 growth in the stainless steel sector Nickel import demand is expected to increase in the coming years.

India in World Nickel Industry

* India meets its Nickel Requirement through import.

Frequency Distribution of Nickel at LME
Percentage Change > 5 2 - 5 % 2 %

Percentage terms
2.1 21.9 76.1

Factors Influencing Nickel Markets

* Above ground supply from scrap .
* New mines discovery .
* Nickel demand is derived demand thus the situation in the various industries.
* Growth in consumption of Stainless steel.