Japan Nickel Supply Tightens for Plating Industry

Domestic supply of nickel for plating gets tighter severely when nickel import decreases due to strike at a major producer in Canada. Sumitomo Metal Mining, which makes button type nickel for plating, has no additional supply ability at the full capacity operation. Domestic plating processors try to secure the metal under tight supply.

Sumitomo Metal Mining keeps full capacity operation at monthly 100 tonnes for the nickel for plating since the beginning of the year. The firm gets higher order at spot basis recently.

Vale Inco’s Copper Cliff smelter of Sudbury stopped the operation due to strike since last summer. The smelter produced nickel powder, pellet and button and exported to Japan. With the strike, Japanese nickel powder import decreased from Canada. The import volume decreased to only 26 tonnes in January compared with averaged 200 tonnes per month in January-August 2009.

Japanese nickel demand for plating is estimated to be annual 4,000-5,000 tonnes. Sumitomo Metal Mining supplies a fourth of the demand. However, the firm has no additional capacity to increase the supple when nickel demand recovers for the major applications of stainless and special steel.

A metal processor around Tokyo said the nickel supply is no problem so far but if nickel supply would keep low level, the firm would seek another sourcing. A metal trader around Tokyo said some order is from buyers around Osaka recently but the firm cannot meet the additional order.