Vivek Bajaj

Presents

BASE
METALS:
NICKEL
Know-It-All
 Vivek Bajaj Presents| Base Metals: Nickel

What is Nickel?
BASIC
HISTORY LOOK AND FEEL
PROPERTIES

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

Futures & Options

Where can
one trade Equity

Nickel in Stocks with base as Nickel

India?
ETFs

PHYSICALLY
 Vivek Bajaj Presents| Base Metals: Nickel

EXPIRY
PRICE QUOTE
Last Calendar Day of the
Quotation Base Value - 1 Kg
Contract Expiry Month.

Contract
LOT SIZE
1.5 MT (1500 Kg) Size & DELIVERY UNITS
1.5 MT (1500 Kg)

Expiry
TICK SIZE & P/L PER TICK
MARGIN REQUIREMENT
Rs 0.10 (10 Paise per kg)
320K for 1 Lot (Approx)
P/L = 0.10*1500= Rs 150
Vivek Bajaj Presents| Base Metals: Nickel

Uses of Nickel
Vivek Bajaj Presents| Base Metals: Nickel

Factors Affecting
Nickel Prices

PRODUCTION CHINESE INVENTORY

DEMAND DATA
Vivek Bajaj Presents| Base Metals: Nickel

Factors Affecting
Nickel Prices

GLOBAL INPUT PRICES & WORLD

DEMAND GOVERNMENT ECONOMIC
OUTLOOK POLICIES HEALTH
 Vivek Bajaj Presents| Base Metals: Nickel

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

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

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

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

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

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 Equity Stocks

Jindal Stainless Ltd.

IRON & STEEL SECTOR,

Relationship IRON & STEEL INDUSTRY

between Equity Hindustan Copper Ltd.

and Nickel
NON-FERROUS SECTOR,
METAL INDUSTRY

Tata Steel Ltd.

IRON & STEEL SECTOR,
IRON & STEEL PRODUCTS
 Vivek Bajaj Presents| Base Metals: Nickel Equity Stocks

HBL Power Systems Ltd.

AUTOMOBILE & ANCILLIARIES,

Relationship BATTERIES

between Equity High Energy Batteries

(India) Ltd.

and Nickel AUTOMOBILE & ANCILLIARIES,

BATTERIES

Exide Industries Ltd.

AUTOMOBILE & ANCILLIARIES,
BATTERIES
 Vivek Bajaj Presents| Base Metals: Nickel Equity Stocks

HBL Power Systems

bagged orders from

Relationship BHEL, Indian Railways

for nickel batteries

between Equity With the EV wave

rising in India, nickel

and Nickel
plays an important
role

Stainless steel
industry made quick
recover from the
pandemic.
Vivek Bajaj Presents| Base Metals: Nickel

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