Key Element in Stainless Steel Materials：Nickel

In the production of Toko Tech stainless steel pipes, nickel is an indispensable element. Its unique properties not only enhance the quality and performance of stainless steel but also significantly influence the pricing of stainless steel materials.

The development of the nickel industry is dynamic, but the fundamental facts of the nickel industry are relatively stable. Understanding these facts and overview is beneficial to for us to interact efficiently and work together to promote sustainable development.

Key Facts About the Nickel Industry

• The nickel industry produces a variety of nickel products to meet the global market demand. The primary difference among these nickel products raw materials lies in their nickel metal content. Class 1 nickel metal is defined as having at least 99% nickel content, while nickel pig iron can have a nickel content as low as 3%.
• Stainless steel is the primary end-use application for nickel, accounting for 70% of the global nickel consumption. Nickel metal, nickel pig iron, ferronickel, and nickel oxide sinter are all used in stainless steel production, while nickel metal and nickel compounds have broader primary applications, including alloy steels, non-ferrous alloys, electroplating, and batteries.
• The nickel industry involves substantial trade flows, including nickel ores, nickel concentrates, nickel intermediate products (such as hydroxides, sulfides, oxides, and mixed nickel-cobalt hydroxides), as well as recycled nickel.
• Nickel ore production is currently dominated by Southeast Asia (accounting for over 40% of global nickel ore production).
• The total amount of nickel produced as a byproduct of precious metals and copper is relatively small.
• Primary nickel production is also predominantly located in Asia, particularly China (accounting for approximately 30% of primary nickel production). China is the primary importer of various nickel intermediate products.
• Literature research conducted for this standard (JDDS) indicates that there are no reports of artisanal and small-scale mining (ASM) in the nickel production sector. Generally, nickel ore extraction and primary nickel production are capital-intensive industries requiring substantial mining and metallurgical equipment. Moreover, the nickel content and byproduct levels in ores are relatively low. The combination of these factors prevents ASM activities in the nickel industry.
• Due to its high economic value, nickel has a high recycling rate. Only 15% of the nickel from end-of-life products is not recycled. Approximately 33% of the nickel demand is met by recycled nickel. Unlike other metal industries, the vast majority of nickel recycling occurs downstream at stainless steel plants, where nickel-containing stainless steel and nickel alloy steel scrap are used as raw materials for stainless steel production. In the future, with the increasing application of nickel in emerging fields such as batteries, nickel recycling is expected to grow. The production of primary and recycled nickel is sometimes intermingled, both within the nickel industry and in stainless steel production processes.

Understanding the role of nickel in stainless steel is essential for making informed decisions about your investments. At Toko Tech, we recognize that price stability and product reliability are key concerns for our clients, we strive to offer competitive pricing with reliable quality.