India’s nickel imports are expected to rise 15-20 per cent in August-December as against last year, because of robust demand for steel, particularly from the infrastructure sector, said traders and importers.
The country usually imports over 20,000 tonnes nickel annually, that mainly finds application in stainless and heat resisting steel.
“This rise in nickel imports is expected to come from primary, scrap, and ferro-nickel, although scrap import is a better option at present due to lower prices,” said a top official of Metco Marketing — a leading nickel importer.
Domestic scrap nickel is currently trading at an 80-85 per cent discount to London Metal Exchange’s price of the metal.
“It is difficult to say if scrap will continue to be a better option (until December) in terms of imports, as dynamics of the market can change any time,” the official said. India’s nickel imports are seen rising despite an expected increase in global prices of the metal, as domestic demand for steel remains firm, traders said.
Industry demand
Removal of 5 per cent import duty on ferro-nickel can trigger significant growth in imports of the metal, said most nickel importers.
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“Currently, ferro-nickel imports are negligible but if the 5 per cent duty is abolished, users will be at an advantage since they will be paying only for nickel, while the iron content will come free,” said the official from Metco Marketing.
Ferro-nickel typically contains 38 per cent nickel with the balance being iron.
Price trend
Meanwhile, traders were of the view, global nickel prices may rise further till December on the back of increased buying by China — the world’s largest consumer of most base metals.
Reports that China is planning to purchase 100,000-200,000 tonnes of nickel in the coming months, is expected to keep nickel bullish, they said.
“We expect global nickel prices to move in the $21,000-22,000 a tonne range until December,” said Padam Bansal, owner of Mumbai-based Metchem (India), a leading importer of nickel, aluminium, and zinc.