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Nickel is a chemical element and a transition metal. It is mostly used for high-grade steel manufacturing, and increasingly so, in batteries. Owing to its corrosion resistance, durability, and abundance in availability, stainless steel is used in various sectors, including food and beverage, construction, aerospace, transport, medical, chemical, etc. The major countries in nickel mining include Indonesia, Philippines, Russia, and New Caledonia. Indonesia is also the country with the largest reserves of nickel, followed by Australia and Brazil. Interestingly, nickel reserves are among the metals and minerals with the least remaining life years, however, because nickel is a highly recyclable material, this poses less of a problem.

As base metals gained on the basis of China's most vigorous stimulus since the epidemic, improving the demand picture, nickel futures shot up to $18,010 per tonne, reaching a more than three-month high. Reducing medium-term loan costs for banks is one of the measures the Chinese central bank proposed to reduce mortgage repayment obligations, boost economic growth, and lower borrowing prices. For the first time, Indonesian nickel has been added to the U.S. Department of Labor's list of commodities subject to exploitation, as concerns regarding forced labor in the country's nickel industry have been raised. As a result, Indonesia pledged to strengthen oversight of its commodities industry.

In the medium term, the growth of the nickel market can be driven by the increasing demand for nickel in stainless steel alloys. Today, about two-thirds of the nickel sold annually is used for stainless steel. In addition, growing demand for nickel in automotive batteries, energy storage systems in wind turbines or lower cost solar panels is a key driver of market growth. Asia-Pacific accounts for a large share of nickel consumption. This is mainly due to the presence of large stainless steel companies and battery manufacturers. Additionally, increased nickel consumption in Electric Vehicles (EVs) is also expected to boost the market in the region, as it accounts for a significant portion of nickel demand.