CRU World Nickel Production (September 2002)

Global Nickel Production (September 2002)

Nickel is a naturally occurring element that is used in the manufacture of various products. Nickel is primarily found in two primary sources-lateritic ore deposits and sulfide ore deposits. As of September 2002, the worlds production of nickel stood at 1,640,000 tons.

The largest producer of nickel in the world is Russia, accounting for 35% of world production. The majority of Russian nickel is produced in the Kola Peninsula, located in northwest Russia on the Barents Sea. The Kola Peninsula is an important geographical location, as it is home to a large nickel ore deposit.

China is the second largest producer of nickel in the world, accounting for 31.2% of world production. The majority of nickel produced in China comes from the Yunnan province, located in southwestern China. Nickel production in Yunnan is mainly accomplished via open-cut mining methods.

Brazil is the worlds third largest producer of nickel, with an output of 13.7%. Brazil is home to one of the worlds largest lateritic ore deposits. This ore deposit is located in the Amazon Region and covers an area of approximately 16,000 square kilometers.

Canada is the fourth largest producer of nickel in the world, with a production of 10%. Nickel Canada is the worlds largest producer of nickel, with approximately 688,000 tons being produced in 2002. The majority of nickel ore mined in Canada comes from the Sudbury region.

Australia is the fifth largest producer of nickel in the world, with 8.7% of the world market share. Australia is home to the worlds largest nickel sulfide ore deposit, located at Mt. Keith. Nickel ore is also mined in the Leinster and Kambalda regions.

Indonesia is the sixth largest producer of nickel on the international market, with 6.2% of world production. The majority of nickel ore mined in Indonesia comes from mines in Sulawesi and Kalimantan, located in the western part of the country.

France, Cuba, Philippines, Colombia, and Guatemala complete the list of the worlds top producing countries of nickel. Together they account for the final 5.9% of global nickel production.

In total, global production of nickel stood at 1,640,000 tons in 2002. This represented a decrease of 8.7% when compared to the previous year. The decrease in production was mainly due to a decrease in production in Russia and China. In spite of this decrease in production, nickel remains an important commodity, and production will likely continue to increase in the future.

The world nickel production in September 2002 was 854,100 metric tons, according to data provided by the British Royal Institute of International Affairs Climate and Energy Research Unit (CRU). This figure is based on data from the International Nickel Study Group (INSG). This figure represented a 3.8% increase over the previous year.

Nickel is a metal used in the production of stainless steel and nickel alloys, among other applications. It is typically mined in two forms, nickel ore and pure nickel metal. Nickel ore is usually mined from open-pit or underground operations, while metal is extracted from lateritic ores. The worlds largest nickel producer is Russia, followed by Canada, Australia, and China. Together, these countries account for almost 70 percent of global production.

The year 2002 was marked by continued pressure on the nickel market, as supply outpaced demand for the sixth consecutive year. This resulted in weak prices, which averaged US $3,115 per metric ton for the year. The main cause for this outcome was the boom in Chinese production. The Chinese share of the world’s nickel market grew from 3% in 1990 to 24% in 2002. In addition, the Russian government implemented policies to stimulate production and exports.

Given the current market conditions, and the already high levels of supply, it is unlikely that nickel production will increase significantly in the near future. Furthermore, the pricing environment is expected to remain weak, with prices still below the US$3,500 per ton mark.