Nickel is in short supply, causing the price of stainless steel to rise

Nickel (Ni), which is approximately silver-white, hard and malleable and has a ferromagnetic metallic element, is highly polished and resistant to corrosion. Nickel is a pro-iron element. It is mainly used in the refining of stainless steel materials and is an indispensable element in stainless steel materials.

Recently, due to Indonesia's restriction on raw ore output, the price of nickel has risen fiercely. Indonesia is one of the countries with the largest export of raw ore in the world. However, the export ban issued on January 12 this year has caused prices to rise, and the nickel mine has created a situation that exceeds supply. Thus pushing up the price of stainless steel. Another factor is the reasons caused by the current situation in Russia and Ukraine. Russia accounts for 12% of global nickel supply, so the turmoil in Russia and Ukraine will also have a huge impact on the supply of nickel. Western countries will impose economic sanctions on Russia to influence nickel. Rising prices are also one of the factors. Due to the recent market turmoil, China’s nickel inventories have been gradually declining and the prices of stainless steel materials have risen considerably. Now, some manufacturers and distributors have adopted price closures and other situations, causing the stainless steel market to generate less demand in recent years. .

According to the latest news, Indonesia is expected to have 9 nickel ore processing plants built this year, of which 2 are nickel-iron smelters and the remaining 7 are nickel-containing steel processing plants. However, analysts pointed out that the project also needs to build its own power plant, which is costly and it is difficult to alleviate the shortage of nickel ore within one or two years. Indonesia’s move should be aimed at vigorously developing the domestic economy to increase domestic demand, just as it did in China a decade ago, so as to make the country strong. (Foshan Zhiyu Stainless Steel Material Co., Ltd.)