Strong world economic growth through the mid-nineties triggered an expansionary drive in nickel capacity by existing producers resulting in a nickel production increase of 30% in the five years 1993-1998. In Europe, expansion in Finland and the United Kingdom accounted for most of the 48% or 60,000t increase in production. In Oceania, Australia and New Caledonia accounted for all of the 39% or 35,000t increase in that area while Japan accounted for most of the 22% increase in production in Asia. New projects scheduled for completion, mainly in Australia, and further expansions by existing producers indicate significant nickel production increases for 1999 and 2000.

 

Recycling of Nickel Containing Products

Industry experts estimate that nickel bearing scrap totalling 4.4-4.6 million tonnes per year is collected and recycled. This scrap is estimated to contain almost 350,000t of nickel (or one-quarter of the total demand) annually which is mainly used by the stainless steel industry. The nickel scrap processing industry consists of four or five major companies operating on an international level to ensure that nickel bearing scrap is collected from every corner of the globe. Most of the scrap is stainless steel scrap, resulting from the demolition of obsolete factories, machinery and equipment and consumer goods.

 

Nickel price

The price of nickel has shown its volatility over the past decade. The economic collapse of the former East Bloc countries in the early nineties led to substantially lower nickel demand, which together with a massive de-stocking of nickel bearing materials pushed exports to the West to an all time high. Nickel prices were driven lower than the cash costs of production resulting in reduced nickel production in the West in 1993. A significant increase in exports from Russia in starting in the last half of 1996 and continuing throughout 1998 reversed the recovery of nickel prices occurring in 1994 and 1995.