Market Overview

The market for nickel is expected to expand at a CAGR of more than 5% during the forecast period. Major factor driving the market studied is rising demand for corrosion resistant alloys in the oil & gas industry.

  • Volatility in the supply demand scenario is expected to hinder the growth of the market studied.
  • Growing popularity of electric vehicles is likely to act as an opportunity in the future.
  • Asia-Pacific dominated the market across the globe with the largest consumption.



Key Market Trends

Rising Demand for Stainless Steel

  • Owing to its corrosion resistance, durability, and abundance in availability, stainless steel is used in various sectors, including food & beverage, home, transport, medical, chemical, etc.
  • Nickel plays a crucial role in the manufacture of stainless steel. It is one of the major commercial grades of alloys used in stainless steel production. Nickel alloying holds for almost two-third of the stainless-steel production process across the world.
  • Also, one of the key advantages of nickel in stainless steel is in stabilizing the austenitic structure of steel at room temperature. In general, 8% of nickel is present in the commonly used grade of stainless steel.
  • As of 2018, stainless steel production increased by about 5.2% from the previous year. This ratio has increased in recent years due to rising Chinese stainless-steel production, which uses a high proportion of primary nickel units.
  • As a result, Chinese stainless-steel mills consume more than half of the primary nickel. Other major stainless-steel producing regions are smaller than China and fulfill a greater share of their nickel requirements from stainless steel scrap than from primary sources.
  • Such positive growth of stainless steel is likely to increase the demand nickel market in the future.



Asia-Pacific to Dominate the Market

  • Asia-Pacific holds the major share in the consumption of nickel. This is primarily due to the presence of large stainless-steel manufacturing companies and battery manufacturers.
  • The major nickel ore concentrations in Philippines, New Caledonia, Australia, Indonesia, and China are instrumental to making the region the largest producer of nickel.
  • Furthermore, the increasing consumption level of nickel in?China?is also expected to boost the market in the region as it alone accounts for the highest share of the world’s nickel demand.
  • China is the global leader in the electric car market, with the sales of new electric vehicles being four times higher than that of the United States.
  • According to EV volumes, the sales of new electric vehicles in China is estimated to reach more than 920 000 units in 2019, with a majority of domestic OEMs dominating the market.
  • This robust growth is boosting the demand for the consumption of nickel in the region during the forecast period.



Competitive Landscape

The nickel market is fragmented. The major companies include Norilsk Nickel, Vale, BHP, Jinchuan Group International Resources Co. Ltd, Glencore, etc.

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