Collections: Knowledge You Should Know before SHFE Nickel Futures Trading on Mar. 27

Nickel ore: Indonesia and the Philippines are top 2 nickel ore producers in the world. Ore supply from Indonesia has dropped significantly from Indonesia since its ban on unprocessed ore in early 2014.  

 

Primary nickel: China is world’s largest producer of primary nickel, and Russia, Japan, Canada and Australia ranks from 2 to 5 worldwide.  

 

Primary nickel: China is world’s largest consumer of primary nickel, and US, Japan, South Korea and Germany ranks from 2 to 5 worldwide. 

 

Downstream Consumers: stainless steel, electroplating, and battery material sectors. 

 

Price factors: market fundamentals, import & export policy, costs both upstream and downstream, and market speculation. 

 

Indonesia and the Philippines are world’s top 2 producers of nickel ore, and any change from the two countries will play a bigger impact on nickel prices. The Indonesian’s ban on unprocessed ore since early 2014 triggered a surge in nickel market. Besides, seasonal factors should be also closely watched, such as the monsoon in the Philippines, holiday factors in China, etc.