Nickel price hits record high

The price of Nickel  hit a 13 month high last week of $15,115 per tonne before slipping back to $14,360. When the price increases it also drives the price of Stainless Steel up and can lead to a huge surge in demand. This is because common Stainless Steel is made up of 18% Chromium and 8% Nickel; commonly known as 18/8.

The consumption of Nickel in Stainless Steel is currently growing at a rate of 5% per year. It is estimated that 1Mt of Nickel is needed to meet the demand of users over the next decade.

It may not come as a shock to some, as the rise in price has been forecasted for many years, leading people to believe the radical price increase would happen in 2019. The current rise in Nickel is causing problems throughout the world and some sources have been told there are only 2 months left of supply left, for the current demand.

Many factors are contributing to the shortage and high value, one of them is China's usage of Nickel in Stainless Steel, with one large producer buying big volumes to meet its demands. Popular types of stainless steel such as 3 series which include grade such as 304 and 316 which typically contain between 8 and 11% Nickel, depending on the specific standard required. Other grades of stainless typically heat resistant grades like alloy 310 have a very high Nickel content. These are different from your average Stainless Steel with Nickel contents as high as 20%. 

Adding to this, Electric vehicle consumption is predicted to rise to over 5% off all Nickel production by 2020 and hoping to increase to over 59% by 2030. Electric cars are now under threat as the price of Nickel continues to grow, causing issues with battery manufacturing and also bodywork issues related to Stainless Steel.

Analysts predict that Nickel priced will remain strong and with shortfalls in supply we could continue to see these surges in price.

Fundamentally this means that with the price increase of Nickel it will have a ripple effect on Stainless Steel prices globally. BS Stainless are committed to produce and trade quality Stainless Steel with the best possible price, without any lagging on quality.

For further information on Stainless Steel and updates on the Nickel crisis; please subscribe to our newsletter. Or alternatively, contact us on 01772 337555 to discuss any queries you may have; and to see how BS Stainless can help you.