QUOTE AND NEWS
WA Business News  8 hrs ago  Comment 
The board of nickel miner Western Areas has approved a $32 million capital works program at the company’s Odysseus project, with the definitive feasibility study set to be released in the September quarter.
The Hindu Business Line  Apr 4  Comment 
Last week was a volatile one for the Nickel futures contract on the Multi Commodity Exchange (MCX). The contract opened with a wide gap-up last Thurs
The Hindu Business Line  Mar 28  Comment 
The Nickel futures contract on the Multi Commodity Exchange (MCX) is under pressure. The contract has declined breaking below the key support zone of ₹855-₹860 per kg last week. The contrac
Motley Fool  Mar 21  Comment 
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The Hindu Business Line  Mar 21  Comment 
The Nickel futures contract on the Multi Commodity Exchange (MCX) had reversed lower in the past week, contrary to an expectation for a strong rally. The contract made a high of ₹908 per
SeekingAlpha  Mar 16  Comment 
The Hindu Business Line  Mar 14  Comment 
Nickel futures contract on the Multi Commodity Exchange (MCX) fell initially in the past week. However, the down move was shortlived, and the contract has reversed sharply higher after recordi
Financial Times  Mar 8  Comment 
Injunction set aside as Russian oligarchs battle for control of nickel producer
The Hindu Business Line  Mar 7  Comment 
The nickel futures contract on the Multi Commodity Exchange (MCX) has been stuck in a sideways range between ₹850 and ₹910 per kg for about three weeks. Within this range, the contract made




 
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Nickel is a metal which is mainly used as an alloying element of stainless steel, major ingredient of brass, and for electroplating. Nickel is also used together with lanthanum in the nickel metal hydrid (NiMH) battery.[1] Nickel is highly resistant to corrosion and is widely used to create corrosion resistant alloys and is also used heavily in the electroplating process. Nickel is used with Chromium to create Nichrome, which has a high melting point and is used for the efficient conversion of electricity to heat. Annual world production was 1.4 million tonnes in 2007.[2]

The chart at left shows continuous front-month futures prices for Nickel traded on the London Metal Exchange.

Metal Exchange

Nickel is traded at the London Metal Exchange (LME).[3]

Nickel Producers

Nickel deposits are classified as either sulfide or laterite deposits. Economical viable laterite deposits are huge but with lower concentration of the ore in comparison with sulfide deposits. The primary ore associated with sulfide deposits is Millerite.[4] Biggest producers are

Key Trends and Forces

Economic Cycles

Nickel prices are reacting significant to over or undersupply of the markets with the metal. Prices peaked at more than 50,000 USD/tonne in March 2007 and subsequently declined to less than 10,000 USD/tonne in February 2009. Unprofitable mines were closed as a consequence and one of those was the new Ravensthorpe laterite mine in Australia (BHP) which was supposed to produce 50,000 tpa after full rampup.[5]

Emerging Economies

Usage of stainless steel is increasing with the growth of the economies. Average growth rate for stainless steel production in the BRIC countries was 26.3% during the years 2001-2008.[6]

Different Types Of Stainless Steel

High nickel prices initiated a switch to 200-series steels. This type of steels have 3.5-6% nickel content rather than 8-10.5% in 300-series steels.[7]

Substitution By Nickel Pig Iron

A further reaction to the high nickel prices in 2007 was the use of low grade nickel ore to create nickel pig iron as a substitute for refined nickel in China. This process is not sustainable if nickel prices are below 24,000 USD per tonne.[8]

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References

  1. Wikipedia article on Nickel
  2. International Nickel Study Group - Statistics
  3. London Metal Exchange (LME) London Metal Exchange - Standard Nickel Hub Page
  4. Environmental Sustainability Metrics for Nickel Sulphide Versus Nickel Laterite, December 2008
  5. BHP shelves Ravensthorpe, slashes 1800 jobs, January 2009
  6. Global Stainless Steel Forecast, PriceWaterhouseCoopers, January 2009
  7. Substitution of low-nickel stainless steel grades finds momentum, September 2007
  8. China Raises Nickel Pig Iron Production This Year, Juni 2007
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