Nickel as a trade mineral Nickel is a shiny metal, silvery white in color that belongs to the iron group and

d finds its usage in various industries such as engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging, batteries etc. Nickel is a metal that is highly ductile and malleable and also has features like; extremely resistant to corrosion, low conductivity of heat and electricity, tough and hard, ferromagnetic etc. Due to these features, the metal is primarily an industrial metal and is required as an important ingredient in over 3000 products. Though nickel was recognized as a new metal as late as in the eighteenth century, it has made its presence significant due to its unique features like ferromagnetic, corrosion free etc in this relatively short span of time. The most important and the biggest market that trades in nickel is London Metal Exchange (LME). Also, nickel is traded in the Indian commodities market like Multi Commodity Exchange of India, National Commodity and Derivatives Exchange of India and National Multi Commodity Exchange of India. The Uses of nickel: Primary constituent of various other alloys, example-stainless steel In coin currency of various countries in pure or alloy form As a gas that is used as a fuel in turbines and rocket engines as it sustains in high temperatures. As a catalyst for the hydrogenation of vegetable oils

Applications The major use of nickel is in the preparation of alloys. Nickel alloys are characterized by strength, ductility, and resistance to corrosion and heat. About 65 % of the nickel consumed in the Western World is used to make stainless steel, whose composition can vary but is typically iron with around 18% chromium and 8% nickel. 12 % of all the nickel consumed goes into super alloys. The remaining 23% of consumption is divided between alloy steels, rechargeable batteries, catalysts and other chemicals, coinage, foundry products, and plating. Nickel is easy to work and can be drawn into wire. It resists corrosion even at high temperatures and for this reason it is used in gas turbines and rocket engines. Monel is an alloy of nickel and copper (e.g. 70% nickel, 30% copper with traces of iron, manganese and silicon), which is not only hard but can resist corrosion by sea water, so that it is ideal for propeller shaft in boats and desalination plants. Nickel in the environment Most nickel on Earth is inaccessible because it is locked away in the planet's iron-nickel molten core, which is 10 % nickel. The total amount of nickel dissolved in the sea has been calculated to be around 8 billion tons. Organic matter has a strong ability to absorb

the metal which is why coal and oil contain considerable amounts. The nickel content in soil can be as low as 0.2 ppm or as high as 450 ppm in some clay and loamy soils. The average is around 20 ppm. Nickel occurs in some beans where it is an essential component of some enzymes. Another relatively rich source of nickel is tea which has 7.6 mg/kg of dried leaves. Nickel occurs combined with sulphur in millerite, with arsenic in the mineral niccolite, and with arsenic and sulphur in nickel glance. Most ores from which nickel is extracted are iron-nickel sulphides, such as pentlandite. The metal is mined in Russia, Australia, New Caledonia, Cuba, Canada and South Africa. Annual production exceeds 500.000 tons and easily workable reserves will last at least 150 years. Health effects of nickel Nickel is a compound that occurs in the environment only at very low levels. Humans use nickel for many different applications. The most common application of nickel is the use as an ingredient of steal and other metal products. It can be found in common metal products such as jewelry. Foodstuffs naturally contain small amounts of nickel. Chocolate and fats are known to contain severely high quantities. Nickel uptake will boost when people eat large quantities of vegetables from polluted soils. Plants are known to accumulate nickel and as a result the nickel uptake from vegetables will be eminent. Smokers have a higher nickel uptake through their lungs. Finally, nickel can be found in detergents. Humans may be exposed to nickel by breathing air, drinking water, eating food or smoking cigarettes. Skin contact with nickel-contaminated soil or water may also result in nickel exposure. In small quantities nickel is essential, but when the uptake is too high it can be a danger to human health. Side-effects of nickelAn uptake of too large quantities of nickel has the following consequences: - Higher chances of development of lung cancer, nose cancer, larynx cancer and prostate cancer - Sickness and dizziness after exposure to nickel gas - Lung embolism - Respiratory failure - Birth defects - Asthma and chronic bronchitis - Allergic reactions such as skin rashes, mainly from jewelry

- Heart disorders Nickel fumes are respiratory irritants and may cause pneumonitis. Exposure to nickel and its compounds may result in the development of a dermatitis known as nickel itch in sensitized individuals. The first symptom is usually itching, which occurs up to 7 days before skin eruption occurs. The primary skin eruption is erythematous, or follicular, which may be followed by skin ulceration. Nickel sensitivity, once acquired, appears to persist indefinitely. Carcinogenicity- Nickel and certain nickel compounds have been listed by the National Toxicology Program (NTP) as being reasonably anticipated to be carcinogens. The International Agency for Research on Cancer (IARC) has listed nickel compounds within group 1 (there is sufficient evidence for carcinogenicity in humans) and nickel within group 2B (agents which are possibly carcinogenic to humans). OSHA does not regulate nickel as a carcinogen. Nickel is on the ACGIH Notice of Intended Changes as a Category A1, confirmed human carcinogen. Effects of nickel on the environment Nickel is released into the air by power plants and trash incinerators. It will than settle to the ground or fall down after reactions with raindrops. It usually takes a long time for nickel to be removed from air. Nickel can also end up in surface water when it is a part of wastewater streams. The larger part of all nickel compounds that are released to the environment will adsorb to sediment or soil particles and become immobile as a result. In acidic ground however, nickel is bound to become more mobile and it will often rinse out to the groundwater. There is not much information available on the effects of nickel upon organisms other than humans. We do know that high nickel concentrations on sandy soils can clearly damage plants and high nickel concentrations in surface waters can diminish the growth rates of algae. Micro organisms can also suffer from growth decline due to the presence of nickel, but they usually develop resistance to nickel after a while. For animals nickel is an essential foodstuff in small amounts. But nickel is not only favorable as an essential element; it can also be dangerous when the maximum tolerable amounts are exceeded. This can cause various kinds of cancer on different sites within the bodies of animals, mainly of those that live near refineries.

The various forms in which nickel is produced and used are Ferro- nickel, nickel oxide and other chemical forms. Nickel is one of the five ferromagnetic metals apart from Cobalt, Iron, Gadolinium and Dysprosium. Products of Nickel are mined products, intermediate products, primary nickel products and secondary nickel products. Global Scenario Russia as the major exporter of nickel Around 20 countries in all continents are indulged in the mining of nickel and around 25 countries are indulged in the refining process. Also, nickel is produced through the recycling process. Currently, the world mine production in context of nickel is around 1.4 million tons per year and the plant production of nickel is around 1.25 million tons. Russia is the largest mine producer as well as the largest plant producer of the metal. The world production of nickel is somewhat concentrated and it is clear from the fact that around 55% of the total supply of the metal comes from only five companies. The world consumption level in context of nickel is around 1.15 million tons. The largest consumption centers of the world are European Union and Japan having an annual demands of 3.74 lakh tons and 2 lakh tons. The rate of consumption of nickel is growing steadily with an average rate of 3.1% per year. The major sectors that constitute the demand for the metal are:-

Stainless steel sector accounts for the maximum demand for the metal i.e. 65% of the total demand. 20% share of demand arises from the other steel and alloys sector. The plating sector accounts for 9% of the demand for nickel. The remaining 6% nickel is used to make coins and other chemicals. Russia produces 19% of the total world output of nickel smelter and refinery products. Continent wise demand for nickel is shown in the list below:Europe (around 430000 metric tons) Asia (around 400000 metric tons) America (around 160000 metric tons) Former Eastern bloc (around 140000 metric tons) Other west (around 48000 metric tons) The countries that are indulged in the mine production of nickel are Russia (315000 metric tons), Australia, Canada, Indonesia, New Caledonia, Cuba, Columbia, China, Dominican Republic, Brazil (45000 metric tons). Worlds total mine production hovers around 1.4 million tons. As mentioned above, Russia took over Canadas lead in 1970s and till now Russia has maintained it and produced 127,000 metric tons in 1990. The top 5 mine producing countries, mentioned in the list, account for over 65% of the total production. The total mine reserves present are believed to sustain for another 100 more years from now. Regarding the plant production in context of nickel, the annual figures sum up to around 1.25 million metric tons. Russia again leads the list of countries indulging in the plant production of the metal. The production shot up all around the world in the 1990s due to the expansion of the plant capacities of the major existing producers of nickel. It produced 127,000 metric tons in 1990. Russia reveals a comparative advantage in minerals and metals. The leading nickel metal producing countries with their production figures are:Russia (260000 metric tons) Japan (164500 metric tons) Australia (139000 metric tons) Canada (124400 metric tons) Norway (77000 metric tons) China (64700 metric tons) Finland (55900 metric tons) New Caledonia (50500 metric tons).

Major producers of Nickel are Russia, followed by Australia, Canada, New Caledonia and Indonesia, which represents over 65% of total world production. Other nickel producing countries are Colombia, Philippines, China, Cuba and Brazil. Russia has increased by 5% since 2003. It being the largest exporter of nickel metal and its alloys, with 2006 exports of 260 thousand tones, more than doubles the exports of Canada, the

second largest exporter with U.S.A. being first. Russia has the largest nickel mining nation supplying 18.2% of the market in 2008. Australia has substantial nickel resources, followed by Cuba & Canada. Russia produced 236 000t of nickel in 1999, out of a global output of around 1 Mt per year. Of this amount, 222 000t (more than 90%) was produced by major mining company Norilsk Nickel. Norilsk contains approximately 78% of Russia 's nickel reserves, which are made up primarily of sulphidic and lateritic ores. Sulphidic ores are primarily located at Norilsk 's operations in Siberia (85%) and the Kola Peninsula (15%) with minor lateritic ores being produced from the Urals. The Oktyabrskiy underground mine located in Siberia produces 55% of Norilsk 's nickel production (1998 production estimated at 105 000t). The presence of very rich deposits of natural resources in the country has helped a lot in the economic improvement and in the trade related income of the country. Russia is also home to the worlds fourth-largest nickel reserves, which total about 6 million MT. Roughly 85 percent of the countrys production, or 237,000 MT, comes from Norilsk Nickel. StatisticsWorld nickel reserves, according to the latest data by the USGS, amount to 80,000,000 mt. Russia holds currently 7% of the worlds nickel reserves amounting to 6,000,000 mt, coming in fourth place after Australia, New Caledonia, and Brazil. World nickel production in 2011 amounted to 1,800,000 mt. Russia produced 16% of the worlds nickel production at 280,000 mt. All of the nickel producing countries increased production from 2010 to 2011. Canada, for instance, increased their production by 26% from 158,000 to 200,000 mt, whereas Russia only increased production by 7% from 269,000 to 280,000 mt. Of the 269,000 mt of Russian nickel production in 2010, Norilsk Nickel Russian operations were responsible for 88% at 236,000 mt. Norilsk Nickel is currently Russias largest mining company, operating Nickel mines at both their Kola MMC and Polar Division locations. Russian enterprises received an average price of 21,997 USD per tonne of nickel in 2010 compared with only 15,853 USD per tonne in 2009. The reason for Russia exporting nickel and many other commodities are Any economy depends on two things: supply and demand. Russia has abundance of highly educated labor ,land (1st in the world with over 17 million square meters) and resources (belongs to the top ten countries for reserves of most metals, energy resources and others) to supply any venture, and sufficient demand (over 139 million of people) to absorb any niche market products.

Dynamic Economic Growth-Since 2000 to 2010, Russias GDP growth has averaged 5.3% per year, including the 7.8% fall in 2009. The highest growth was achieved in 2007.

. World-Renowned Human Capital -Russia offers access to a skilled and welleducated human resource pool, letting companies recruit where they work. Russia has one of the most highly skilled workforces in the world, backed by an educational system with a solid global reputation and producing professionals who take up leading positions in areas such as natural and applied sciences, programming, R&D, engineering, etc Vast Natural Resources -1st place in world reserves and production of nickel ore and refined nickel. Unique Geographic Position -Russia links Europe with Asia and also borders the North American continent, offering the following advantages: -Worldwide sea routes Russia is bounded by three out of four world oceans -Major functioning and planned airport hubs -Rail and road transit routes (leads the world in length of electrified railroads) -Pipelines, developed networks of various types of warehousing facilities -Other transport and logistics infrastructure. Technologically Advanced Economy -Strong Russian scientific knowledge provides excellent opportunities for R&D partnerships with Russian research institutes and universities. Attractive Taxation System -With a personal income tax rate of 13% for residents, profit tax rate of 20%, and VAT rate of 18%, Russia has one of the most generous nonoffshore tax regimes in the world, aimed at promoting investment and further developing the economy. Russia has recently introduced a European-style participation exemption regime that exempts dividends received from qualifying participations. Stable Social and Political System-Following a transition period, the Russian economy has achieved macroeconomic and financial stability. Living standards have been steadily improving, with per capita GDP topping US$10,000 in recent years. Government approval rates are some of the highest among the world's leading democracies. The country has a tolerant multi-ethnic, multi-cultural and multi-confessional population.

India as an importer of the metal Nickel Emerging economies such as India and China play a major role in the growth of global nickel industry along with developed countries such as US, UK and Germany, as these countries have larger presence of automotive and aviation industries. India does not have any history related to the metal nickel. It does not have any resources neither does it indulge in the mine as well as plant production of the metal. But as one of the fastest developing nations of the world, Indian demand for stainless steel and consequently nickel has been rising at a high rate. A rising demand and no production makes the country a total importer of nickel. The country imports around 45 to 50000 tons of nickel annually. This demand is expected to rise in future with the increase in the demand of stainless steel. The government has implied import duties in the import of the metal at 15%. India does not produce nickel, as there are no sulphide deposits in the country and mainly depends on imports for its consumption. The only source of producing the metals is withthat of lateritic oxides, which is available in Sukhinda valley, in the state of Orissa. About 85% of Indias imports are in the form of unwrought nickel. Russia is the main supplier of nickel to India and contributes nearly half of its imports, followed by Canada with 9% and Brazil with 7%. Indias nickel consumption rose from 2,800 tonnes in 1974 to 16,600 tonnes in 2007. Nearly 67% of nickel output was used to make stainless steel in India. The majority of India's consumption is of low nickel content stainless steel, which uses 1% to 4% of the base metal. India is totally dependent on nickel import. The country imports around 30,000 tonnes of nickel per annum. With increasing use and manufacture of stainless steel, nickel import is expected to increase in the coming years. Nickel import is primarily regulated by the government. Import of ferro-alloy and nickel, key raw materials for production of stainless steel currently attracts 5% import duty.

Major Trading Centers of Nickel The London Metals Exchange (LME) is the only major trading center that trades nickel. The primary nickel futures contract has been traded on the LME since 1979, and the exchange is the only major global centre for nickel consumers and producers to hedge their market risks. The LME Nickel contract, valued in Dollars, can be cleared in USD, sterling, yen or euro. Lot sizes are for 6 tons with a tolerance of +/-2%. This physical contract requires that the primary nickel be of purity not less than 99.80% with the chemical analysis conforming tothe current ASTM specification. Nickel Prices

Nickel prices (annual average) have ruled at significantly higher levels in the year 2007. Thereafter, prices have witnessed sharp decline due to subdued demand on global economic slowdown. Prices are witnessing recovery in recent months in 2009. Factors influencing Nickel Prices World economic growth Growth in stainless steel demand Demand from emerging economies particularly China and India LME Nickel inventories Freight rates US Dollar movements against other major currencies such as EUR, GBP. Government regulation on imports and duties 708 884 2,439 1,776 3,964 8,252 7,088 19,304 16,970 1,983 3,328

Exported value in 2001 Exported value in 2002 Exported value in 2003 Exported value in 2004 Exported value in 2005 Exported value in 2006 Exported value in 2007 Exported value in 2008 Exported value in 2009 Exported value in 2010 Exported value in 2011

Current scenario Developing countries such as China and India play a major role in the growth of global nickel industry. But the developed countries such as the US, the UK, and Germany also witness strong demand as these countries have large automotive and aerospace industries. World mine production of nickel showed an increment from year 1999 to 2007 and then dropped 8.1% from 2007 to 2008. Nickel production has witnessed a slump in 2008 as a result of severe economic downturn across the globe Australia tops the nickel mining production, followed Russia, Cuba, Canada, Brazil, New Caledonia, South Africa, Indonesia and China. World primary nickel production has averaged growth of 3% per annum over 20 years to 2007 and then declined to 2.8% in 2008. In 2008, world primary nickel production was 1.39 million tones, lower from previous year production of 1.42 mtn.