Nickel Commodity Trading
Did you know that Nickel is the fifth most common element on earth?
Nickel is a lustrous, silvery-white metal discovered in 1751. It has high melting point of 1453°C, relatively low thermal and electrical conductivities, high resistance to corrosion and oxidation, good strength and toughness at elevated temperatures, and is capable of being magnetized. It is also very ductile and alloys readily with other metals.
As a result of these qualities nickel is widely used in over 300,000 products for consumer, industrial, military, transport/aerospace, marine and architectural applications. The biggest use, however, is as an alloying metal along with chromium and other metals in the production of stainless and heat-resisting steels.
About 65% of nickel is used to manufacture stainless steels and 20% in other steel and non-ferrous alloys, often for highly specialized industrial, aerospace and military applications. About 9 % is used in plating and 6% in other uses including coins and a variety of nickel chemicals
Nickelprice depends upon various factors, including industrial growth, global economy, trade policies and geopolitical events. Besides, events like growth in automobile sector, construction of new infrastructure, discontinuance of historical uses, supply disruption, etc. also affect Nickel prices.
The metal is traded as a commodity mainly on London Metal Exchange (LME) and Multi Commodity Exchange of India (MCX), LME is used as a benchmark across the globe. Nickel is also one of the highest traded commodity on Indian commodity bourses.
What makes Nickel a good investment?Nickel containing materials play a major role in our everyday lives like food preparation equipment, mobile phones, medical equipment, transport, buildings, power generation etc.
Most nickel-containing products have long useful lives. Average life is probably 25-35 years, with many applications lasting much longer
Nickel use is growing at about 4% each year while use of nickel-containing stainless steel is growing at about 6%
Why is Nickel a wise investment for an Indian trader?The diverse uses of Nickel make the metal significant for the production of stainless steel and other industrial and consumer applications.
China is the top producer and consumer of Nickel followed by Japan and US. India is eighth largest consumer of Nickel.
With growing urbanization and industrialization in both China and India, the demand is expected to rise even further.
The developing countries are investing significant amounts in infrastructure sector boosting demand for Nickel. Also growing stainless steel industry is expected to keep demand for the metal higher.
MCX Nickel price can be used as reference for Indian traders. As the commodities market grows and per-capita income rises, demand for industrial metals will remain higher.
How can Kotak Commodity help me invest in Nickel?The Kotak Commodity Gateway Account will give you access to research and trading facilities to conduct Nickel trading in India. While SMS alerts and Call & Trade will provide you regular updates on Nickel prices in India, our expert research reports will help you make informed decisions. Our brokerage rates are attractive. The best part is that our Gateway is a lifetime free trading account!
To learn more about Kotak Commodity Gateway Account, please click here.
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