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๐Ÿ“ฆ Nickel ores and concentrates

Nickel ores and concentrates

HS Code:

๐Ÿ“ฆ

Overview

Nickel ores and concentrates (HS Code: 260400) encompass raw materials primarily extracted for nickel content, used extensively in the production of stainless steel, batteries, and various alloys. This category includes nickel-bearing ores like pentlandite and garnierite, as well as concentrates obtained through processes like flotation. Nickel is a critical industrial metal, and its trade is influenced by global demand for infrastructure, renewable energy technologies (especially electric vehicle batteries), and geopolitical factors affecting mining regions.

Total Trade Volume

USD 22.5 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

12% (applied by certain developing economies)

Lowest Rate

0% (under free trade agreements like APEC and EU-Canada CETA)

Common Restrictions

  • Export bans or quotas (e.g., Indonesiaโ€™s policy to encourage domestic processing)
  • Environmental compliance requirements for mining operations
  • Licensing requirements for exporters
  • Anti-dumping duties in specific markets

Market Trends

Rising demand for nickel in EV batteries

Increased trade volumes and investment in nickel-rich regions, with prices surging by 30% from 2021 to 2022 due to battery production needs.

2022

Shift toward sustainable mining practices

Countries imposing stricter environmental regulations, leading to higher production costs but also opening markets for 'green nickel' with lower carbon footprints.

2021-2023

Geopolitical supply chain disruptions

Sanctions and export restrictions (e.g., Russian nickel indirectly affecting global supply) have caused price volatility and supply chain diversification efforts.

2022

Recent Developments

Indonesiaโ€™s Nickel Export Ban Expansion

Indonesia extended its export ban on unprocessed nickel ores to encourage domestic smelting and value addition, significantly impacting global supply chains.

January 2023

Increased nickel prices globally and boosted domestic processing industries in Indonesia, while forcing importers like China to seek alternative suppliers.

EU Critical Raw Materials Act

The European Union classified nickel as a critical raw material, aiming to secure sustainable supply chains through partnerships with nickel-producing countries.

March 2023

Potential for increased trade agreements with nickel exporters and higher scrutiny on environmental standards in mining operations.

Philippines Nickel Production Surge

The Philippines ramped up nickel ore production to meet growing demand from China, despite environmental concerns over mining practices.

Mid-2022

Strengthened position as a key supplier but raised concerns over sustainability, potentially leading to stricter regulations or trade barriers.