Nickel's back: Rising nickel prices are projected to lead to revenue growth

The Nickel Ore Mining industry has faced difficult operating conditions over the past five years. The world price of nickel has declined significantly over the period, and industry output has fallen. Most of the nickel ore mined in Australia is processed locally into nickel concentrate by downstream smelting and refining firms. A slowdown in infrastructure projects and in the production of nickel-based stainless steel goods in China has reduced demand for nickel. These factors have reduced Australian nickel exports, and contributed to lower nickel prices as demand has fallen. Exports are expected to total 16.7% of the industry's revenue in 2017-18.Nickel ore production is expected to total 210.4 kilotonnes in more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Most of the nickel ore mined in Australia is processed locally into nickel concentrate
  • As nickel prices have fallen, most industry firms have reported losses over the period
  • Nickel prices are projected to rebound steadily over the next five years
  • Industry Report - Industry Analysis Chapter

    The Nickel Ore Mining industry’s performance depends on nickel output trends, the world price of nickel (denominated in US dollars), the value of the Australian dollar, and downstream domestic demand. Nickel prices are sensitive to the demand and supply balance for nickel. Falling nickel prices over the past five years have been largely due to higher nickel volumes available in international markets, weaker demand, and subdued global economic growth. Overall, industry revenue is expected to decrease at an annualised 10.3% over the five years through 2017-18. However, industry output and nickel prices are expected to rise in 2017-18, resulting in revenue increasing 2.7% for the year, to $1.9 billion. Australia’s nickel production is expected to rise by 1.8% i...purchase to read more.

    Additional Insights for the Nickel Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Nickel Ore Mining Industry are

  • Availability of nickel resources
  • Output is sold under contract - incorporate long-term sales contracts
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as World price of nickel and Demand from gold and other non-ferrous metal processing in the Nickel Ore Mining industry impact industry performance..

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    What's in this report

    What is the Nickel Ore Mining Industry?

    Industry firms mine nickel-bearing ores. These firms may also carry out basic nickel ore beneficiation processes to produce nickel ore concentrate, which is considered an industry product. Nickel ore that undergoes additional processing is included in other downstream manufacturing industries.

    Industry Products
  • High-grade nickel ore
  • Medium-grade nickel ore
  • Low-grade nickel ore
  • Nickel ore concentrate
  • Industry Activities
  • Nickel ore mining
  • Nickel ore beneficiation processes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of nickel
  • Demand from gold and other non-ferrous metal processing
  • US dollars per Australian dollar
  • World price of steel

  • Current Performance
  • Industry structure
  • Boom-bust prices
  • Mixed growth
  • Chart: Revenue Growth

  • Industry Outlook
  • A growing appetite
  • Output recovers
  • Price gains
  • Table: Nickel Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Nickel Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Gold and Other Non-Ferrous Metal Processing
  • Metal Coating and Finishing

  • Key Selling Industries
  • Contract Mining Services
  • Mineral Exploration
  • Mining and Industrial Machinery Wholesaling
  • Petroleum Product Wholesaling

  • Products & Services
  • High-grade nickel ore
  • Nickel ore concentrate
  • Medium-grade nickel ore
  • Low-grade nickel ore
  • Chart: Nickel Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic nickel processors
  • Export markets
  • Other domestic metal processors
  • Chart: Major Market Segmentation for the Nickel Ore Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Nickel Ore Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Nickel Ore Mining Industry

  • Industry Globalization
    BHP Billiton Limited, Glencore Holdings Pty Limited, Western Areas Limited, FQM Australia Nickel Pty Ltd,
  • Table: BHP Billiton Limited - financial performance
  • Table: Glencore Holdings Pty Limited - financial performance
  • Table: Western Areas Limited - financial performance
  • Table: FQM Australia Nickel Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Nickel Ore Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Nickel Ore Mining Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Wages (2009-2023)
  • Nickel Content Mined (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A basic process that improve the ore content prior to additional refining and smelting processes.
  • Concentrate
  • A fine, powder-like product containing the valuable ore mineral from which some of the waste mineral has been eliminated.
  • Lateritic Nickel Ore
  • A low-grade nickel ore that is found near the Earth's surface and is mined via open pit mining methods.
  • Nickel Pig Iron
  • A lower-priced and lower quality nickel product made by Chinese producers that is more expensive to make due the low nickel grade.
  • Solvent Extraction
  • A process to recover nickel by using sulphuric acid to dissolve the metal from the ore and then processing the solution to recover both the metal and the acid (which can be reused).
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    Why buy this report?

    IBISWorld’s Nickel Ore Mining market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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    This report on Nickel Ore Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Nickel Ore Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

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