Monday, November 20, 2006 10:32:07 PM
Nickel Trends
The price of nickel has nearly tripled over the past year due to high demand and declining stocks.
The past year has seen the price of nickel nearly triple, rising from approx US$5.50/lb in December 2005, to over USD$15.00/lb in August 2006. Currently, we are seeing nickel prices of $13.70/lb (November 18, 2006), as the price seems to have come off of the late summer highs. But pressure on declining nickel stocks remain, and the demand for nickel-steel (stainless steel) is rapidly increasing.
There is a growing need for increased nickel production as LME nickel stocks have continued to decline the past year. So long as demand for nickel remains high, the only options to relieve pressure from low nickel stocks is to either increase the supply, or to watch nickel prices rise to even greater highs.
Nickel is primarily mined from two different types of ore deposits: (a) lateralites where the primary ore minerals are nickeliferous limonite and garnierite, and (b) magmatic sulfide deposits where there primary ore mineral is pentlandite.
The world’s major nickel producing countries are Russia (Siberia), Australia (New Caledonia) and Canada (Sudbury Basin), with other significant supplies coming from Indonesia, Columbia and most recently Turkey (a strategic European supplier).
Nickel is used in a number of applications, but by far the most significant is in the production of stainless steel. Nickel steel is in high demand and constitutes over 60% of the global nickel market, which is a major economic factor in why the price of nickel has been rising so rapidly. Other applications for nickel include the production of nickel copper alloys, nickel silver alloys, and nickel plating.
This is one of the primary reasons why junior mining exploration companies with properties that have significant proven nickel reserves in the ground are becoming more and more attractive to investors. With major nickel mining producers such as Falconbridge, Noranda and Rio Tinto enjoying the benefits of the rise in both nickel and other base metals, the search for a well run quality junior exploration company focused on nickel is as hot a commodity as nickel itself.
Quick Facts
Nickel Producing Countries
1. Russia
2. Australia
3. Canada
4. Indonesia
Top Nickel Producing Companies
1. Falconbridge
2. Noranda
3. Rio Tinto
Applications of Nickel
1. Stainless Steel- 60%
2. Nickel Copper Alloys
3. Nickel Silver Alloys
Compliments of Mining Stock Report http://www.miningstockreport.com
The price of nickel has nearly tripled over the past year due to high demand and declining stocks.
The past year has seen the price of nickel nearly triple, rising from approx US$5.50/lb in December 2005, to over USD$15.00/lb in August 2006. Currently, we are seeing nickel prices of $13.70/lb (November 18, 2006), as the price seems to have come off of the late summer highs. But pressure on declining nickel stocks remain, and the demand for nickel-steel (stainless steel) is rapidly increasing.
There is a growing need for increased nickel production as LME nickel stocks have continued to decline the past year. So long as demand for nickel remains high, the only options to relieve pressure from low nickel stocks is to either increase the supply, or to watch nickel prices rise to even greater highs.
Nickel is primarily mined from two different types of ore deposits: (a) lateralites where the primary ore minerals are nickeliferous limonite and garnierite, and (b) magmatic sulfide deposits where there primary ore mineral is pentlandite.
The world’s major nickel producing countries are Russia (Siberia), Australia (New Caledonia) and Canada (Sudbury Basin), with other significant supplies coming from Indonesia, Columbia and most recently Turkey (a strategic European supplier).
Nickel is used in a number of applications, but by far the most significant is in the production of stainless steel. Nickel steel is in high demand and constitutes over 60% of the global nickel market, which is a major economic factor in why the price of nickel has been rising so rapidly. Other applications for nickel include the production of nickel copper alloys, nickel silver alloys, and nickel plating.
This is one of the primary reasons why junior mining exploration companies with properties that have significant proven nickel reserves in the ground are becoming more and more attractive to investors. With major nickel mining producers such as Falconbridge, Noranda and Rio Tinto enjoying the benefits of the rise in both nickel and other base metals, the search for a well run quality junior exploration company focused on nickel is as hot a commodity as nickel itself.
Quick Facts
Nickel Producing Countries
1. Russia
2. Australia
3. Canada
4. Indonesia
Top Nickel Producing Companies
1. Falconbridge
2. Noranda
3. Rio Tinto
Applications of Nickel
1. Stainless Steel- 60%
2. Nickel Copper Alloys
3. Nickel Silver Alloys
Compliments of Mining Stock Report http://www.miningstockreport.com
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