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Characteristics Of Nickel
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- 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.
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Characteristics of World Nickel Market
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- 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.
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Supply and Demand
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- 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.
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Important World Nickel Markets
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Indian Nickel Market
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- 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.
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India in World Nickel Industry
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- India meets its
Nickel Requirement through import.
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Frequency Distribution of Nickel at LME
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Percentage Change
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> 5
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2 - 5 %
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2 %
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Percentage terms
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2.1
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21.9
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76.1
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Factors Influencing Nickel Markets
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- Above ground supply
from scrap .
- New mines discovery
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- Nickel demand is
derived demand thus the situation in the various industries.
- Growth in
consumption of Stainless steel.
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