Think you’re An Expert in What Drives the Price of Nickel? Know the Factors to Find Out

1. Think you’re An Expert in What Drives the Price of Nickel? Know the Factors to Find Out Created on 28th March 2019https://www.gillbroking.com

2. Nickel is one of the precious metals that is recognized for its high melting point, robust & ductile nature, as well as the catalytic properties in the market. No doubt, these are some of the brilliant properties of nickel that makes it the strongest and largely used metal on our planet. The history of Nickel dates back to an ancient era where it was first discovered in the Chinese scriptures. But nickel had not gained much popularity until one of the popular Swedish scientists found and named it. After a few decades of its discovery, the manufacturers found out the amazing attributes of Nickel and started using it in the steel and iron industry for the production of alloys. However, this precious metal rose to popularity during World War 1 and World War 2 where it was the most demanded product in many countries. In the current era, mines dig out no less than 2.25 million tons of nickels in a year. Not only nickel is widely used in the iron and steel manufacturing industry but its continuous demand in the military, marine, transport, daily-use consumer goods, aerospace, and even the architectural sectors is all that has made this precious metal stand out in the market. The Production of Nickel Nickel is mainly produced in two ways i.e. by extracting it (also known as mining) or by recycling the already used Nickel. Mining is the primary source of nickel production. But with the increasing concern for the metal recycling process, a majority of the countries have embraced nickel recycling. In fact, more than 43% of the Nickel utilized in the United States of America is generated from recycling. Ever wondered why Nickel is widely used in different industries? Or what makes this metal so precious that its demand keeps on increasing every single hour? Well, that's perhaps because of its exclusive heat-resistant, corrosion-resistant, ductile, and robust properties which makes it the manufacturer's and consumer's favorite metal. The country that tops the nickel mining country list is the Philippines with a total of 500,000 tons of nickel being extracted annually while the country that has the largest amount of nickel is Australia (19,000 tons). Factors that drive the Price of Nickel Let's have a look at some major factors that drive the price of nickel: Chinese Demand– China is the largest country in terms of nickel demand. The rapid development and constant industrial and infrastructure requirement have led the country to be known for having the largest nickel demands across the globe. But, considering the current fall in the GDP, we doubt whether the demand for nickel and metals in this country will remain the same. Global Stocks– The LME (London Metals Exchange) is known for maintaining the global records for all the precious metals including Nickel. If there is a shortage in the inventory

3. of Nickel, the market may increase its price whereas if there’s oversupply, the market may reduce its prices. Currently, LME is tracking the Chinese stocks of nickel as it has the largest nickel demand. Global Demand Outlook– Nickel is used in the production of alloys. It is also used in huge projects such as the construction of a great bridge in China. Though the USA isn't looking forward to investing in any project that requires nickel, if the government takes on any such project, the nickel live price will go up. Government Policies– The Philippines, which was once considered the largest nickel mining countries, is predicted to prohibit all mining activities in the country. This way, the changes in the government policy can largely affect the production, supply, demand, mining, and of course the prices of nickel. Follow Us: