Nickel: forecast and observations
for 2019

nichel-anteprima-1280x591.jpg
A peculiar field of the metallurgic industry: let’s see how nickel’s 2019 has been…

Undoubtedly metallurgic industry has always to face the continuously fluctuating demand and the instability of countries’ economy. It’s easy to go from impasse to periods during which demand reaches extremely high peaks. If companies want to be able to deal with all this they have to strive for keeping their balance sheet under control. They can do this by increasing their products’ value or decreasing their production or, yet, offering different services, according to the demand.

Nonetheless, steel and iron market variability is necessary; it doesn’t depend on the choice of a single company but on a set of causes that make this variability the only way to keep on offering a specific product, such as Nickel.

 


Nickel. Versatile but expensive

Nickel is a white-silvery metal belonging to the iron group. It is hard, malleable, ductile and is used especially for stainless steel (very popular for its resistance to corrosion and rust) and for the preparation of alloy. Nickel is used in particular in petroleum, chemical and automotive industry, for foundry and plating products, for the preparation of rechargable batteries, catalytic converters and for coining. It is easy to figure out that this versatility has made Nickel an expensive metal, due to the high demand that’s also increasing. More specifically, today Nickel’s price is 80% higher than the minimum levels reached in 2016, regardless it’s still restrained if compared to the record of 50000 dollars reached in 2007. According to some estimate, Nickel consumption is destined to grow of 4% every year until 2027, especially in view of the growing of steel demand for the construction of electrical vehicles.

What is price raising conditioned by?

Apart from its versability, about which we already talked about, Nickel’s price is obviously set by the meeting between supply and demand, and regardless of the fact that it has always been used mainly in steel and iron industry, today Nickel is widely demanded also by industries that produce car batteries, since they are constantly reducing the use of lithium and cobalt and increasing the use of Nickel. This is a direct consequence of the diffusion of the electric car, which is destined to become always more important. As confirmed by the London Metal Exchange (LME), electric car success will be strictly tied to an increase of demand and, consequently, of Nickel’s price.

Metallurgica Veneta, in Vicenza, for 20 years has been able to satisfy quickly and rigorously the requests coming from its customers, even those from the most demanding ones. The wide range of our special and common steel, our tubes for mechanical applications, the availability of products within our warehouse and our excellent distribution network are the main characteristics of our service. Contact us for information or a quote by writing to info@metallurgicaveneta.it or calling at +39 0444 436321.