Nickel is a silvery-white metal that is strongly magnetic and resistant to corrosion. It has many industrial uses including in stainless steel production. In India, nickel can be traded through futures contracts on the MCX exchange, with a contract size of 1.5 metric tons and a price quote per kilogram. Key factors that influence nickel prices include production levels from major miners like Indonesia, Chinese demand which accounts for over 50% of global consumption, inventory data, and the overall health of the global economy.

1. BASE
METALS:
NICKEL
Vivek Bajaj
Presents
Know-It-All

2. Vivek Bajaj Presents| Base Metals: Nickel
What is Nickel?
HISTORY
Late 1800s, iron & steel manufacturers
discovered that an allow with Nickel
would strengthen traditional steel
New ore deposits discovered during
20th century.
Strong demand for Steel during WW1
and WW2 boosted nickel production
Silvery, White Metallic Element
Solid and Lustrous
Strong and Ductile
Magnetic and Resistant to Corrosion
High Melting Point and Catalytic
Properties
One of the most widely used industrial
metals on Earth
LOOK AND FEEL
BASIC
PROPERTIES

3. MCX
Futures & Options
Equity
Stocks with base as Nickel
ETFs
PHYSICALLY
Where can
one trade
Nickel in
India?
Vivek Bajaj Presents| Base Metals: Nickel

4. Contract
Size &
Expiry
PRICE QUOTE
Quotation Base Value - 1 Kg
LOT SIZE
1.5 MT (1500 Kg)
TICK SIZE & P/L PER TICK
Rs 0.10 (10 Paise per kg)
P/L = 0.10*1500= Rs 150
EXPIRY
Last Calendar Day of the
Contract Expiry Month.
MARGIN REQUIREMENT
320K for 1 Lot (Approx)
DELIVERY UNITS
1.5 MT (1500 Kg)
Vivek Bajaj Presents| Base Metals: Nickel

5. Uses of Nickel
Vivek Bajaj Presents| Base Metals: Nickel

6. Factors Affecting
Nickel Prices
PRODUCTION CHINESE
DEMAND
INVENTORY
DATA
Vivek Bajaj Presents| Base Metals: Nickel

7. Factors Affecting
Nickel Prices
GLOBAL
DEMAND
OUTLOOK
INPUT PRICES &
GOVERNMENT
POLICIES
WORLD
ECONOMIC
HEALTH
Vivek Bajaj Presents| Base Metals: Nickel

8. Production
Primary Production (Mining) and Secondary
Production (Recycling) are the 2 ways to
supply Nickel. Indonesia is the largest mining
country.
Mining Disturbances such as strikes increase
the prices of Nickel due to supply limitations.
Top Miners are Indonesia, Philippines, Russia,
New Caledonia, Australia, etc.
Vivek Bajaj Presents| Base Metals: Nickel

9. Chinese Demand
1)China accounts for more than 50% global
demand of nickel.
2)Aggresive Infra development or a cool-off
for the same in the country can fluctuate
prices for nickel as demand for products like
stainless steel fluctuates.
3)Economic Data is of high importance in
China as it gives a direction towards the
development in the country.
Vivek Bajaj Presents| Base Metals: Nickel

10. Inventory Data
The London Metal Exchange (LME) keeps
track of global inventory levels for Nickel.
Shortage or surplus of stock levels affect
Nickel prices globally like they increase when
stock is low, and reduce when stock is high.
Chinese inventory levels need close
monitoring as they have the largest impact.
Vivek Bajaj Presents| Base Metals: Nickel

11. Global Demand Outlook
Global Demand Outlook in the industrial sector affects
Nickel Prices.
Use of nickel alloys makes the structure in question
stronger, durable and anti-corrosive so construction og
heavy infra such as bridges, etc. increase demand for
nickel.
Economies looking at potential infra development or
developed economies like the US allocating fresh funds
to infrastructure could raise nickel prices.
Vivek Bajaj Presents| Base Metals: Nickel

12. Input Prices &
Government Policies
Mining nickel requires energy in the form of
coal, electricity and crude oil. A fluctuation in
the prices of these affects nickel prices
directly.
A ton of government policies have major
impacts on nickel prices. Eg.,: Indonesia being
a major exporter of Nickel had banned exports
for a few months recently driving prices higher
but had to resume due to budget deficits.
Vivek Bajaj Presents| Base Metals: Nickel

13. World Economic
Health
1)Economic health of China and other major
economy of the world drives Nickel prices as a
stronger economy drives development while a
weaker economy reduces demand.
2)Trade Wars between China and US had a
considerable impact on Nickel Prices.
3)Political comments or tweets by powerful
leaders affect the country's economic
behaviour.
Vivek Bajaj Presents| Base Metals: Nickel

14. Equity Stocks
Relationship
between Equity
and Nickel
Jindal Stainless Ltd.
IRON & STEEL SECTOR,
IRON & STEEL INDUSTRY
Hindustan Copper Ltd.
NON-FERROUS SECTOR,
METAL INDUSTRY
Tata Steel Ltd.
IRON & STEEL SECTOR,
IRON & STEEL PRODUCTS
Vivek Bajaj Presents| Base Metals: Nickel

15. Equity Stocks
Relationship
between Equity
and Nickel
HBL Power Systems Ltd.
AUTOMOBILE & ANCILLIARIES,
BATTERIES
High Energy Batteries
(India) Ltd.
AUTOMOBILE & ANCILLIARIES,
BATTERIES
Exide Industries Ltd.
AUTOMOBILE & ANCILLIARIES,
BATTERIES
Vivek Bajaj Presents| Base Metals: Nickel

16. Equity Stocks
Relationship
between Equity
and Nickel
HBL Power Systems
bagged orders from
BHEL, Indian Railways
for nickel batteries
With the EV wave
rising in India, nickel
plays an important
role
Stainless steel
industry made quick
recover from the
pandemic.
Vivek Bajaj Presents| Base Metals: Nickel

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Vivek Bajaj Presents| Base Metals: Nickel