Robust global demand to drive nickel investments, says research firm

SPOKANE (Scrap Monster): According to market research firm TechNavio, the rising demand for nickel across the globe is likely to trigger fresh investments in nickel exploration projects. Underdeveloped countries like Myanmar, Indonesia and Papua New Guinea along with Philippines will turn out to be the big beneficiaries of such investments, the report adds.

Technavio predicts the global nickel demand to grow by nearly 5% per annum up to 2019. The increased demand for nickel in construction of urban transportation such as sky buses, monorails, metro rail and buses will lead to discovery of new mines and expansion at existing mining facilities.

According to Technavio analyst, many big companies in China and India are funding the development of greenfield mines in underdeveloped countries like Burma, Indonesia, and Papua New Guinea to support nickel extraction and production. In addition many US and European companies have expressed keen interest in funding discovery of nickel mines in countries such as Philippines.

However, the report also warns that discovery of alternatives in place of nickel may limit the growth of nickel market during the forthcoming years. The development of alternatives may reduce the sales of nickel and pull back the expansion of nickel market. For instance, chromium is increasingly used in the manufacture of stainless steel, and titanium alloys. It is found to be more effective in resisting corrosion in piping used by power and petroleum industry.

Founded in 2003 and headquartered in London, UK, Technavio has offices across North America, Europe, and Asia. Technavio is a leading market research company with global coverage. It provides research and analysis on emerging market trends to help businesses identify market opportunities and develop effective strategies to optimize their market positions.