NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/03/12 - China reported a 6.8 times growth in nickel ore imports in 2006. The reasons for high imports are China’s burgeoning stainless steel industry and limited nickel reserves.
General Administration of Customs has released statistics indicating that China, in 2006, imported around 3.78 Million Tons of nickel ore, 6.8 times higher than 2005. The total cost of nickel ore imports reached US$ 440 Million in 2006, a 1.5 fold rise over 2005. However, average prices of imports slashed down by 67.7% to US$ 116.40 per ton.
In 2006, China relied heavily on the Philippines for nickel ore imports. The Philippines shipped 3.34 Million Tons of nickel ore to China, 11.6% higher than 2005. This amount was 88.5% of the total nickel ore imports of China. In 2005, it was the Australian nickel mines that supported Chinese nickel industry.
Shanghai Securities News reported that import of nickel ore in China boomed in 2006 because huge quantities of low-grade nickel ore was imported from the Philippines that lead to a decline in average import price.
Annually, around 1.3 million tons of nickel is produced globally. Two-third of the nickel is used in stainless steel production (as raw material), 20% in coins and alloys, and 10% in electroplating.
As nickel is among the raw materials for the production of stainless steel, the rapid growth in stainless steel’s production in China has raised the demand for nickel. China’s nickel ore reserves are insufficient to meet the demands of its domestic market. Therefore, China is reliant on imports of nickel ore.
According to the RNCOS report, “Nickel Market Outlook (2007)”, the demand of nickel in China is undoubtedly on a rise, but some matters on the supply side needs serious thought. China’s domestic supply of nickel is limited as its nickel reserves aren’t very rich. Also, around 50% of the nickel production relies on imported supplies of intermediate materials. Hence, there is a little scope to raise the domestic production and this is the reason why China depends on imports heavily to meet its demand.
The market research report also talks about the China’s import from other countries in terms of percentage, production and consumption forecast of refined nickel (by 2010) and forecast of stainless steel production forecast.
Apart from this, the report takes into account the supply and demand scenario of nickel on global level, the production, consumption, and market value of nickel at global scale, top ten countries according to their nickel production and consumption statistics, and future prospects of the nickel industry.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.