Aerospace sector needs more nickel, capacities limited 7 November 2023 – The aerospace industry is demanding more and more nickel due to full order books. High-quality nickel products increasingly difficult to obtain. Prices have doubled. The high order volume in the aerospace industry has brought another important consumer of nickel back into the focus of supply chains.
This is because nickel is in high demand in the aerospace industry due to its high corrosion resistance, high strength and special mechanical properties.
As a result, competition for high-quality nickel products for electric vehicles, energy infrastructure and other stainless steel applications continues to intensify.
Limited supply drives prices
Superalloys with a high nickel content are generally used to a lesser extent in the energy sector than in aerospace, with lower individual order volumes and greater project dependency. According to RystadEnergy analysts, prices for smaller orders have already more than doubled since the first quarter of 2023 due to limited supply.
Growing demand for high-nickel alloy bars and stainless steel bars
Overall, the analysts see steadily growing demand for high-nickel alloy bars and stainless steel bars. Especially in the refinery, chemical, energy and liquid gas sectors, which alone require almost 1 million tonnes of stainless steel bars per year.
With aircraft manufacturers’ full order books and rising defence budgets worldwide, this is likely to further fuel demand and, in particular, competition for scarce production capacities.
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