Characteristics Of Nickel

  • 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





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.