RESTRICTED GENERAL AGREEMENT ON MDF/W/21 28 June 1985 TARIFFS AND TRADE Special Distribution

PROBLEMS OF TRADE IN CERTAIN NATURAL RESOURCE PRODUCTS Background Study on Nickel and Nickel Products Prepared by the Secretariat

Table of Contents

Page 1. INTRODUCTION 5 SECTION I: Salient Features of the Nickel Industry 5 2. Properties and characteristics 5 3. Nickel ores and reserves 5 4. Mining and Processing 11 5. Nickel products, industrial uses and substitutes 13 6. Structure of the world nickel industry 20 7. Pricing in the nickel industry 24 SECTION II: Production Consumption and Prices 29 8. Mine production 29 9. Smelter production 34 10. Semi-manufacture of nickel 36 11. Consumption 36 12. Prices and stocks 43 SECTION III: International Trade 48 13. Ores and concentrates 51 14. Intermediate products 51 15. Refined nickel products 51 16. Direction of trade 52 SECTION IV: Commercial Policy Situation 59 17. Tokyo Round Negotiations: tariff assessment 59 18. Trade in nickel and nickel products under different tariff treatment according to stages of processing 62 19. Tariff escalation 103 20. Non-tariff measures 103

85-1142 MDF/W/21 Page 2

Page SECTION V: Activities in Other International Organizations 107 21. The Third United Nations Conference on the Law of the Sea 107 22. International cooperation on nickel 108 23. Customs Cooperation Council (Brussels) 109 24. Summary and observations 109 ANNEX I: Summary of pre-Tokyo and post-Tokyo Round Tariff Situation Affecting Nickel and Articles Thereof 112-118 ANNEX II: The Harmonized System of Commodity Description and Classification 119-121 MDF/W/21 Page 3

List of Tables Page 1. Estimated world nickel reserves and reserve base, 1985 7 2. Commercial forms of primary nickel 14 3. World consumption by uses in market economy countries 17 4. Corporate shares of world nickel production, 1982 22 5. Principal world nickel producers 23 6. Estimated costs of nickel production, 1975 26 7. World production of nickel, 1960-1983 30 (in thousands of metric tons)

8. World production of nickel 31 (as a percentage of world production)

9. World consumption of nickel, 1960-1983 39 10. Relative growth rates of nickel consumption until 1990 42 11. Nickel prices, 1950-1984 44 12. World stocks of unwrought nickel, 1976-1984 47 13. Exports of nickel - unwrought 50 14. Imports of nickel - unwrought 53 15. Direction of trade by main importers, 1983 54-55 16. Direction of trade by main supplires, 1983 56-57 17. Pre-Tokyo Round and Post-Tokyo Round tariffs in nine developed markets (in percentages) 61 18. Summary of imports of nickel and nickel products under different tariff treatment in twenty-three countries 63 19. - Australia 65 20. - Austria 67 21. - Canada 69 22. - EEC 71 23. - Finland 72 24. - Hungary 74 25. - Japan 75 MDF/W/21 Page 4

Page 26. - New Zealand 77 27. - Norway 78 28. - Switzerland 80 29. - Sweden 82 30. - United States 83 31. - Argentina 86 32. - Brazil 87 33. - Colombia 88 34. - Hong Kong 90 35. - India 91

36. - Korea 93 37. - Malaysia 94 38. - Spain 95 39. - Singapore 97 40. - Thailand 98 41. - Yugoslavia 100 42. Nickel and nickel products tariff rates according to different stages of processing in the following countries: Chile, Czechoslovakia, Egypt, Iran, Nigeria, Poland, Romania, Venezuela. 101 43. Non-tariff measures affecting trade in nickel and products thereof 104-106 Diagram I Nickel scrap flow 10 List of Charts I Nickel consumption by first use, 1983 15 II Cash operating costs, 1983 27 III World mine production of nickel 32 IV Changes in world nickel consumption and crude steel production, 1953-1983 37 V World nickel consumption, 1950-1983 40 VI Canadian nickel prices, 1950-1983 45 MDF/W/21 Page 5

1. INTRODUCTION 1. The present study on nickel forms part of the series of factual background papers being prepared by the secretariat on non-ferrous metals. These studies are being undertaken in accordance with the Decision taken by Ministers at the Thirty-Eighth Session of the CONTRACTING PARTIES in relation to Problems of Trade in Certain Natural Resource Products. 2. This study provides information on nickel and nickel products concerning the following CCCN positions: 26.01, 26.03, ex 28.28, ex 28.30, ex 28.35, ex 28.38, ex 28.39, ex 28.42, ex 28.43, ex 28.48, ex 73.02, ex 73.03, 75.01, 75.02, 75.03, 75.04, 75.05, 75.06. Section I gives background information on some of the salient features of the nickel industry. Section II briefly reviews developments with regard to world nickel production, consumption and prices since 1960. Section III provides information on trade flows in nickel ores and concentrates; on intermediate nickel products such as matte, speiss, and nickel oxide, and on refined but unwrought nickel products including, nickel oxide sinters ferro-nickel, electrolytic nickel cathodes, briquets, pellets, rondels, incomets etc. Section IV provides detailed information on trade flows on a tariff line basis, together with tariff treatment in twelve developed country markets and some developing countries. It also provides information on non-tariff measures affecting nickel and nickel products, notified in GATT. Section V describes actions in other international organizations related to nickel.

SECTION I: Salient Features of the Nickel Industry 2. Properties and characteristics 3. Nickel (Ni) a light grey metal belongs to the iron-cobalt family. It has an atomic number of 28, an atomic weight of 58.70 and a melting point of 1452°C. Nickel shares some properties with iron; high melting point, strength, hardness, and magnetism. It is, however, superior to iron in its ability to resist corrosion and oxidization and in its great strength at elevated temperatures. Alloyed with other metals, nickel imparts corrosion resistance, strength and toughness at high temperatures and other qualities preferable to those of other materials in a number of applications. 3. Nickel ores and reserves 4. Nickel occurs basically in four main types of mineral ores; sulphide ores, oxide ores, arsenidic ores and sedimentary ores, of which only the first two are currently of economic interest. Arsenidic ores are today considered to be virtually worked out. Sedimentary ores occur in manganese nodules on the ocean floor which, according to tests carried ou. so far, contain on average approximately 1 per cent nickel. This source of ore is potentially important since sea-bed mining is seriously envisaged in the future when the technological problems involved might have been overcome. 5. The largest concentration of sulfide ores is in the Sudbury district of Ontario, Canada. Sulfide ores exist also in Australia, South Africa, China, Zimbabwe, Botswana, Finland, Morocco, Norway and the Soviet Union. Until the late 1960s sulfide deposits accounted for almost two-thirds of nickel mined in the world. MDF/W/21 Page 6

6. Oxide (laterite) deposits are formed by a process of laterization over long periods of weathering and erosion. They are found near the surface, can usually be mined by open-pit methods, and exist mainly in tropical areas. Countries producing nickel from laterite ores include New Caledonia, Cuba, Dominican Republic, Australia, Greece, United States, Indonesia, Colombia, Philippines, Brazil, Burma, Albania, Soviet Union, German Democratic Republic and Poland. Laterite deposits have recently been discovered in Burundi, India, Ivory Coast, Tanzania and Zaire. Oxide or laterite deposits which now account for the major part of identified world reserves are of two types; those in which silicates are predominant, and those with a predominant iron base. Silicate ores (also called garnierite) which comprise most of the New Caledonian deposits, are richer in nickel content than sulphide ores, usually exceeding 1.5 per cent. The second type of laterite deposits, (limonitic) nickel-ferrous iron laterites, while rich in iron (45-50 per cent) contain a low level of nickel, about 1.0 per cent. Most of the deposits in Cuba, the Philippines, Indonesia and most other developing countries are of this type. 7. The world nickel reserve base, excluding nickel associated with sea-bed manganese nodules, have been estimated at about 111 million tons for 1985. On the other hand, total world reser-es have been estimated at about 58 million tons of nickel. About 57.1 per cent of the world reserves are found in the developing countries which account for 29 per cent of current mine production. Cuba alone accounts for about 34.4 per cent of total world reserves, New Caledonia 3.4 per cent, Dominican Republic 1.4 per cent, Brazil 1.5 per cent, Botswana 0.8 per cent, Colombia 1.1 per cent, Yugoslavia 3.2 per cent, Zimbabwe 0.3 per cent. Other developing countries with major reserves are the Philippines 3.4 per cent, and Indonesia 7.4 per cent. Developed market economy countries were estimated in 1985 to account for 28.1 per cent of reserves, among them Canada and Australia have the largest shares, 13.8 per cent and 4.0 per cent respectively; others are US 0.5 per cent, Greece 4.5 per cent, South Africa 4.8 per cent, Finland 0.1 per cent. The centrally-planned economies inclucing China account for about 14.8 per cent of total world reserves with the USSR alone accounting for 12.6 per cent. Small reserves are also known to exist in a number of other countries. Table 1 shows the known world reserves of nickel in 1985 and their distribution. Laterite ores are estimated to account for about 75 per cent of known reserves as against a share of about 35 per cent of current mine output.

8. The discovery of a vast quantity of metal-bearing nodules on the ocean floor has added a new dimension to attempts to have an accurate estimate of

In almost every occurence of laterite nickel ores the two types of deposits (limonitic and silicate types) are present, but in widely varying proportions. Geologically the distinction betweem the two types is one of degree and any sharp classification is necessarily arbitrary. MDF/W/21 Page 7 Table 1 Estimated World Nickel Reserves and Reserve Base, 1985

Percentage Reserye share of Countries/economies Reserves base reserves World Total 58,140 111,250 100.0 Developing countries and territories 33,183 72,500 57.1 Botswana 450 500 0.8 Burundi _ 1,300 _ Brazil 900 4,700 1.5 Colombia 650 700 1.1 Cuba 20,000 25,000 34.4 Dominican Republic 800 1,100 1. Guatemala _ 900 _ India _ 600 _ Indonesia 4,300 5,800 7.4 Philippines 2,000 5,100 3.4 New Caledonia 2,000 17,000 3.4 Papua New Guinea _ 1,400 _ Zimbabwe 200 1,900 0.3 Yugoslavia 1,883 2,000 3.2 Other _ 4,500 _ Developed countries 16,340 29,050 28.1 Australia 2,300 5,300 4.0 Greece 2,600 2,800 4.5 Finland 40 50 0.1 Canada 8,000 14,800 13.8 United States 300 2,800 0.5 Union of South Africa 2,800 2,900 4.8 Other 300 400 0.5 Centrally-planned economies 8,617 9,700 14.8 USSR 7,300 8,100 12.6 Albania 222 250 0.4 China 800 1,000 1.4 Other 295 350 0.5

¹The reserve base includes demonstrated resouces that are currently economic (reserves) marginally economic (marginal reserves), and some of those that are currently sub-economic (sub-economic resources)

Source: Bureau of Mines, United States Department of the Interior, 1985. MDF/W/21 Page 8 world nickel resources and reserves. These nodules, also widely known as manganese nodules, contain mainly manganese, nickel, copper and cobalt. Assuming that these nodules will be mined, those in the "first generation" operations will contain, on the average, approximately 1.3 per cent nickel, 1.1 per cent copper, 0.23 per cent cobalt and 25.0 per cent manganese (if recovered). There are strong indications that because of the high cost of entry into ocean mining and the economies of scale, that one likely individual mining project will need to have an annual capacity of not less than 3 million tons of dry nodules. The feasibility of a 3 million tons per year operation, however, remains to be demonstrated. Thus, assuming a recovery rate from processing of 90 per cent, each project would at least produce 35,000 tons of nickel, 30,000 tons of copper and 4,000 tons of cobalt annually. The quantity of sea-bed nickel on the market at any time will depend therefore on the number of viable projects in operation. As has been indicated above, the ratio of the four main minerals found in nodules is significantly different from the relative size of present or likely future demand for each of them. Because of this and the different land-based reserve status of these metals, there is a view that the decision to mine the nodules and the level of production will be determined by the market prospects for nickel. The extent of nodule development , therefore. will be dictated by the outlook for an increase in world demand for nickel and the degree of competitiveness between marine- and land-based sources of supply.

¹Resources as distinct from reserves are defined as total known deposits regardless of whether or not they can be mined at a profit under current economic conditions. Resource availability is essentially dynamic since the state of technology will be the crucial factor in determining what is and what is not to count as a resource at any point in time. Reserves are the proportion of identified resources that are economic to extract given current prices and costs. Large fluctuations in costs and prices, especially the latter, which occur over relatively short periods, may lead to large fluctuations in the level of reserves, particularly for those countries with large marginal deposits. ²The Nickel Industry and the Developing Countries, - UN New York 1980 - ST/ESA/100, page 45). ³The Nickel Industry in the Developing Countries - United Nations, New York 1980 - ST/ESA/100, page 45. 4There are a number of uncertainties regarding nodule mining at present. Prospects for technological progress in engineering, material and design, which would reduce production costs are uncertain. Furthermore, the design of the particular metallurgic process selected - e.g. whether additional stages of processing are included in the plant design - could determine whether certain minerals, particularly manganese, could be recovered, thus affecting profitability. Another crucial determinant of costs and the quantity of marine nickel output could be the regulations to be imposed by the International Sealed Authority (ISA) whose creation was proposed at the United Nations Conference on the Law of the Sea. A number of countries have so far refused to be bound by certain aspects of the Convention on the Law of the Sea pertaining to the exploitation of sea-bed mineral resources. MDF/W/21 Page 9

9. Global resources of nickel are estimated to be sufficient to support the growth in projected demand well past the end of this century. In addition, new resources will likely be discovered, especially in the developing countries, where exploration has been less thorough and systematic than in the developed countries, and some resources currently considered subeconomic will become viable as a result of technological and market developments. Ocean resources are likely to provide a very large addition to potential world supply. The exhaustion of resources does not therefore appear to be a significant possibility for nickel, at least for the foreseeable future. Secondary sources of nickel 10. Secondary or scrap sources of nickel form a significant component of total nickel supply. A typical nickel scrap flow is shown in Diagram I. Nickel scrap is derived from two sources. The first considered as new scrap is generated in forming and shaping operations in primary processing plants and fabricating plants that use nickel-bearing materials, such as stainless steel and superalloys. New scrap comprises home scrap which is generated and recycled within integrated steel mills, foundries and alloy production plants as "runaround scrap" without reaching an outside market, and "prompt industrial scrap" which is sold to mills and smelters by manufactures or scrap brokers. The other source is old scrap which is recovered from nickel-bearing equipment and consumer goods. This is normally returned through scrap brokers to steel mills, smelters, refineries and foundries. 11. The largest source of secondary nickel that appears on the market is stainless steel scrap, which is an internationally traded commodity. This is almost invariably used to make stainless steel, while nickel alloy scrap is used for nickel alloys and nickel-based super-alloy scrap for super alloys. According to a study by United States Bureau of Mines, the quantity of scrap metal generated in making many nickel alloys is unusually high compared with that generated in making steel and non-ferrous alloys of copper, lead, zinc and silver. In producing and fabricating stainless and alloy steels, product yields average less than 60 per cent. In producing and fabricating high-nickel alloys, product yield is often as low as 20 per cent. There is some loss in recycling in-house high nickel alloy scrap. Once the nickel bearing material leaves the primary plant, scrap loss is 30 per cent or more owing to inadequate material segregation. The refractory nature of most high nickel alloys makes processing them to yield separate elements both technically difficult and expensive. In the United. States high-nickel alloy scrap is normally not utilized unless its composition is known within close limits

Mineral Commodity Profiles - Nickel - Bureau of Mines, United States Department of the Interior, 1983 - page 10-11. ²Idem, page 11. MDF/W/21 Page 10

Diagram 1

NICKEL SCRAP FLOW DIAGRAM

_ _ _ _ _ X~~~~~~~

------Jl

______J~~~~ 1 -- !1 vlItS

_ ___ t__EXPORTS

Source: Mineral Commodity Profi les, 1983 (Bureau of Mines - US Dept. of the Interior) MDF/W/21 Page 11

Except for the United States, no data are available about the exact magnitude of nickel scrap in the industry , since nickel scrap is usually included without identification in the statistics on refined nickel output. United States data, however suggests that nickel scrap accounts for about 25 per cent of output and consumption and the same ratio probably applies worldwide. 4. Mining and processing 12. Most known oxide deposits occur near the surface and can be mined by open-pit methods, and consequently labour costs are a small fraction of total costs. Sulphide ores, on the other hand, are generally found deep labour intensive underground and are mined using underground methods and hence are more susceptible to increases in labour costs . On the whole production costs for the two types of deposits are significantly different and this has been discussed in greater detail in Section II of this study. The exploitation of sulfide ores accounted for as much as 66 per cent of nickel mined in the world as late as the mid-1960s. The shift towards greater exploitation of laterite ores started in the mid-1960's after technological developments permitted the economic development of these ores. Concurrently, the development of the argon-oxygen-decarbonization (AOD) furnaces enabled the use of ferro-nickel in the making of stainless steel, thus boosting the exploitation of laterite ores. Another factor was the marked rise in the price of nickel in real terms from the mid-1960s which boosted the profitability of nickel mining. At present about 55 per cent of nickel production is from laterites. 13. The metallurgical process for extraction of nickel is fairly complex and costly. The different types of nickel ores require different production techniques, however, the processing chain could generally be considered to consist of the stages described below. Sulfide ores 14. The nickel-bearing ores are first ground and carried through a series of flotation and magnetic separation processes. In the operations of INCO Limited, three distinct concentrates are isolated for separate processing: (a) nickel-bearing iron sulfide, (b) copper-bearing nickel sulfide and (c) copper sulfide.

¹A study by the United Nations indicates that on the average home scrap represents 30-40 per cent of the feed of mills and foundries. Prompt industrial and old scrap could account for an additional 20-30 per cent. Primary nickel therefore represents less than half of the nickel feed for steel and alloy producers. (United Nations Department of Technical Co-operation and Development - "The Nickel Industry and the Developing Countries - United Nations, New York 1980). Since 1980 INCO LTD has been adopting the vertical block mining (VBM) technique in its underground mining operations. This is considered more efficient and less labour intensive than the existing method (mainly cut-and-fill-stopping) - (Mineral Commodity Profile 1983 - Nickel - United States Department of Interior Bureau of Mines). MDF/W/21 Page 12

15. The nickel-bearing iron sulfide is desulphurized in a fluid-bed roaster, reduced with carbon monoxide and hydrogen and then leached with ammonia-carbon dioxide solution to remove the nickel. The nickel is recovered as a basic carbonate. Sulphuric acid is also produced. 16. The copper-bearing nickel sulfide is partially desulphurized in multiple-hearth roasters, melted and cooled under specially controlled conditions which allow subsequent magnetic and flotation separation into three concentrates, i.e. nickel sulphide, copper sulfide and precious metals. The nickel sulfide is sintered for direct sale to the alloy markets, and for further refining, both electrolytically and by the carbonyl process. 17. Nickel-bearing sulfide ores are also treated by the Hybinette process which involves selective leaching of the copper with sulphuric acid from a nickel-copper matte derived from a flotation concentrate. The crude products are refined by a combination of electrolytic and concentration techniques. 18. Nickel sulfide concentrating plants to recover about 90 per cent of the nickel in the ore feed. Smelter recovery is estimated at 95 per cent of the contained metal. Laterite ores 19. Laterite (oxide) ores comprise two main types, the silicate type and the limonite type which are also known as nickel-ferrous iron laterites and in which iron oxide minerals are prominent. Unlike sulfide ores, no effective means have been found to concentrate laterite ores in the early stages of processing and they must be treated directly using either pyromellurgical (smelting) or hydrometallurgical (leaching) processes. 20. The silicate ores of New Caledonia are partially treated by a matte smelting process. The ore is fused with calcium carbonate, calcium sulphate and coke to yield nickel-iron sulfide concentrate or matte which is further refined by smelting to eliminate the iron in silicon slag, and yield ultimately fairly pure nickel metal. Silicate ores can also be treated by electric smelting to yield ferro-nickel which can be sold directly to the steel industry. 21. Laterite limonite ores can be reduced in multiple-hearth furnaces and then selectively leached with ammonia-carbon dioxide solutions. The ammonia is recovered efficiently for re-use by steaming the solution which results from leaching, while the nickel is simultaneously precipitated as the basic carbonate. The latter is calcinated to nickel oxide for direct sale, or for further processing to nickel-oxide sinter or ingot nickel. Nickel can also be extracted from laterite ores by direct leaching with sulphuric acid solution at elevated pressure and temperature. A sulfide precipitate produced from the leach solution can be chemically refined for the production of metallic nickel. Plants that process laterites to recover nickel in ferro-nickel normally do recover 90 to 98 per cent of the metal contained in the ore. Limonitic ores yield cobalt as by-product and this contributes to the economic justification for their exploitation. MDF/W/21 Page 13

5. Nickel products, industries uses and substitutes 22. The commercial forms of primary nickel fall into two main classes. Class I products are essentially pure, with a nickel content between 99 per cent and 100 per cent, and can generally be used without constraints for many applications. True Class I products include electrolytic cathodes (99.9 per cent nickel) and carbonyl pellets (99.97 per cent nickel); briquets, rondels and nickel 98 are also accepted as Class I products, although their use is slightly restricted. Class II products have a moderate range of residual elements; the nickel content ranges widely from 20 per cent to 96 per cent. They are usually suitable for specific limited applications. Class II products include various grades of ferro-nickel (40-50 per cent nickel in the United States, but 20-38 per cent outside the United States) and nickel oxide sinter (either 76 per cent or 90 per cent). A new product, incomet (94-96 per cent nickel, introduced in 1974, is replaces oxide sinter in certain markets. Nickel salts, also included under Class II products contain 20-25 per cent nickel. Table 2 shows the classification of the major commercial forms of primary nickel and their main uses. 23. Apart from the main products mentioned above, considerable quantities of by-products are recovered in the processing of nickel ores: about 52 per cent of world production of platinum metals, 30 per cent of cobalt mine production and 4 per cent of world copper output.1 Sulfide ores such as those found in Canada and the USSR are rich in these metals, while laterite ores contain a substantial percentage of iron. 24 The proportion of nickel consumed as Class I or Class II products differs widely among intermediate uses and various markets. At present, slightly over half the nickel output is consumed in "pure" form - Class I. Ferro-nickel and nickel oxide sinter, both Class II, account for about 33 per cent and 13 per cent respectively of total world nickel consumption. 25. For the future, it is expected that the growth in demand for Class I and Class II nickel will be approximately in the same proportion as currently prevails. Ferro-nickel is the major component of Class II nickel and, while its share of the market grew rapidly in the 1960s as the result of the introduction of the argon-oxygen decarbonization (AOD) steel-making process, this growth rate slowed in the 1970s. For the latter half of the 1980s and the 1990s, it is expected that, while ferro-nickel production will increase, its growth will not be significantly different from refined nickel. Much of the future increment of nickel production in market economies will likely come from least-developed countries where most of the undeveloped nickel resources have been identified. 26. The consumption of nickel by major end use category is illustrated in Chart I. It shows that in 1983 approximately 50 per cent of primary nickel consumption was accounted for by the production of stainless steel, a

¹Dusseldorf Handelsblatt of 14 August 1978 - as quoted in Non-Ferrous Metals - Their role in industrial development - by Lotte Miller-Ohlsen, p.16 - published by Woodhead-Faulkner in association with Metallgesellschaft AG. MDF/W/21 Page 14 Table 2

Commercial Forms of Primary Nickel

Composition (percentage)

Nickel Iron Oxygen Main use

Class I Cathode 99.9 0.002 Nickel alloys and electro-plating Pellets 99.97 0.0015 Nickel alloys Powder 99.74 0.01 0.15 Chemical industry, powder metallurgy Briquets, 99.9 0.02 Nickel-cadmium batteries Rondels 99.25 0.087 0.04 Nickel-alloys

Class II Ferronickel 20-55 Balance Ferrous nickel alloys, stainless steel Matte 50-75 Oxide sinter 75-90 0.3 Balance Steel-making Incomet 49-96 Steel making Nickel salts1 Nickel chloride 24.70 Nickel nitrate 20.19 )Chemical industry Nickel sulfate 20.90

4 ______¹Theoretical nickel content

Source: Nickel Handbook - World Bank 1981: Nickel Industry and the Developing Countries U.N. New York 1980. MDF/W/21 Page 15

Chart I

1983 NICKEL CONSUMPTION BY FIRST USE

Source: Supplied by the Department of Energy, Mines and Resources, Canada. MDF/W/21 Page 16 further 10 per cent was consumed in the production of high alloy steels, 20 per cent in non-ferrous alloys, 8 per cent in plating, a further 8 per cent in steel foundry products with the remaining 4% going to other uses including chemical uses. Table 3 on the other hand, shows the evolution in the various categories of end use between 1960 and 1983. It shows, inter alia, that the only categories which have increased their share of consumption over the period have been the stainless and heat resistant steels and non-ferrous alloys. These two categories have also had the fastest annual growth rates. Although the percentage share of stainless steel had gone up between 1979 and 1983, there was a substantial fall in terms of volume. The slowest growth and the biggest declines in usage have been in electro-plating and chemical uses. There was also a fall in the alloyed steels sector after experiencing a relatively fast growth between 1960 and 1979. Stainless steel 27. The share of stainless and heat resistant steel in the total consumption of nickel has grown from 33 per cent in 1960 to over 46 per cent in 1979 and about 50 per cent in 1983. A number of factors account for the rapid growth of nickel use in stainless, particularly the adoption of argon oxygen decarbonization (AOD) have facilitated the use in steel making of both inferior quality scrap and nickel products with lower nickel content, particularly ferro-nickel. Besides cost advantage, the greater availability of ferro-nickel since the latter part of the 1960's has contributed to the growth of nickel use in making stainless. 28. A second factor in the rise of nickel use in stainless steel is the favourable welding characteristics and anti-corrosive quality of nickel-bearing stainless steel (mainly the 300-series), compared with chromium-bearing ones (mainly the 200-series). In particular, nickel-stainless is preferred for piping for the chemical and petrochemical industries, for automobile making and in a number of cryogenic applications (i.e. applications requiring very low temperatures). Potential for future expansion in nickel-bearing stainless lies in the field of nuclear energy and in the transport and storage of natural gas. Electroplating 29. Nickel electroplating accounted for about 14 per cent of total nickel consumption in 1975, Il per cent in 1979 and about 8 per cent in 1983. Nickel is used in electroplating for decorative purposes and as a protection of the base metal against atmospheric corrosion. A major use of electroplating is in the automobile industry where nickel is applied to bumpers. For electroplating purposes cobalt can serve as a substitute for up to 50 per cent of the nickel content, however, if cobalt is highly priced it will not allow any widespread substitution of cobalt for nickel. The use of plating, in a number of applications in most durable and cheaper stainless steel categories, is expected to decrease while aluminium and plastics in particular are likely to increase, depending on relative future prices.

In addition, but to a lesser extent, the electroslag and vacuum processes for remelting along with the Witten-process, have permitted the use of furnace charges containing many more impurities than could be tolerated previously. Table 3 Nickel - World Consumption by Uses in Market Economy Countries ('000 Tons)

Growth Rate Per Annum Use 1960 1970 1975 1979 1983 1960-83

Stainless and heat 72 33 184 41 243 44 276 46 245 50 5.5 resistant steel

Electroplating 33 15 59 13 78 14 67 il 39 8 0.7 Non-ferrous alloys 42 19 77 17 88 16 100 17 98 20 3.7 Alloyed steels 28 13 50 il 61 il 67 il 49 10 2.5 Iron and steel castings 26 12 41 9 39 7 33 6 39 8 1.8 Other uses 18 8 41 9 45 8 52 9 20 4- 0.5

Total 219 100 452 100 554 100 595 100 490 100 3.6

Page17 MDF/W/21 Source: Joseph Hilmy, "Changing Pattern of Nickel Consumption: A Global View", World Bank, Economic Analysis and Projections Department, 1981, Draft. World Bank Price Prospects for Major Primary Commodities Vol. IV Metals and Minerals (1982). MDF/W/21 Page 18

Alloyed steels' 30. Nickel use for the production of alloyed steels accounted for about 11 per cent of total nickel consumption in the 1970s and for about 10 per cent in 1983. Nickel is an essential alloying element in the production of alloy steels for structured applications because it increases hardness and strength properties over a wide service temperature range. Typical uses of alloy steels include crankshafts, axels, gears, shafts, frames, and other parts of cars, trucks, cranes, and earth moving equipment, machine tool parts and frames, aircraft landing gear components, missile parts, and rock drill parts. Iron and steel castings 31. About 8 per cent of total nickel consumption is accounted for by the iron and steel casting industry. Nickel is added up to 5 per cent of total content to impart toughness, machineability, and corrosion and wear resistance. The end product is used in the manufacture of engine blocks and parts for the automotive and heavy equipment industries and steel mill rollers. The growth of this use decelerated in the past and in the 1970s a decline in absolute volume was experienced. Part of the decline has been imputed to the decrease in the size of automobile engines in response to the energy crisis. This decline has however boosted another nickel-bearing sector, that of alloys with higher chromium content, which provide better resistance to corrosion. The slow growth in nickel use in castings has thus been accompanied by an increasing use of nickel in the more advanced category of nickel super alloys. Super alloys and other non-ferrous alloys 32. Nickel is an essential element in a number of super-alloys, nickelicopper alloys, copper-nickel alloys and other nickel alloys. These alloys account for about 20 per cent of total nickel consumption. Super

¹Steel may be divided into three categories: carbon, stainless and alloyed. The first contains .04 to .70 per cent carbon as well as magnanese and minor additions of various alloying elements. Stainless is an alloyed steel that must have chromium among its constituent elements so that the stainless quality may be developed. Alloyed steels (as used in this study are those to which alloying elements - other than carbon and manganese, and excluding stainless steels - are added to develop specific properties. These alloying elements may include one or more of nickel (which makes a category of alloyed steel that is not "stainless"), molybdenum, tungsten, cobalt, titanium and aluminium. ²"Super alloy" is a name used after world war II to describe a group of alloys developed for use in high-temperature application in turbo-chargers and gas turbine engines. These alloys possess relatively high tensile and creep strength under high temperature service environment, such as that normally prevailing in jet engines. A typical super-alloy has the following chemical composition: 19.5 per cent chromium; 13.5 per cent cobalt; 4.3 per cent molybdenum; 1.3 per cent aluminium; 10 per cent carbon; 3 per cent titanium; 2 per cent iron; 0.001-0.10 per cent boron; and the balance nickel (Kiel Working Paper No 160 - op. cit. p.14) MDF/W/21 Page 19

alloys are used particularly in the civil and military aerospace industries, the manufacture of furnace elements and parts, nuclear power generation, and in a number of applications in the chemical and petrochemical industries. Nickel-copper alloys comprise alloys of nickel and copper containing more than 50 per cent nickel. One of the best known Monel 400 group of alloys have wide applications in food preparation and handling equipment, and for interior trim. Cupro-nickel alloys which have copper as the major constituent account for a further 3 per cent of total nickel consumption and are used mainly in piping, tubing, pumps, and valves for marine service because of their excellenceResistance to corrosion and erosion under exposure to marine environment. They face strong competition from titanium alloys. Nickel-molybdenum and certain other nickel alloys are mainly used in pumps, valves, pipe fittings, shafts and other process equipment used in the chemical and petroleum industries. Other uses 33. Nickel is also used in alnico (aluminium-nickel-cobalt) alloys and in the manufacture of magnets for loudspeakers, magnets and small generators, nickel-cadmium batteries etc. Nickel metal and salts are used as catalysts for synthesizing gas, fuel oil and other chemicals. Nickel oxides are used as an undercoating to promote the adherence of porcelain finishes to steel and cast iron products such as household appliances. Nickel metal is also widely used in coinage. Substitutes

34. One of the major factors in the metals industry which help to determine the level of overall consumption is the availability of substitutes and nickel does not escape this phenomenon. Substitution normally takes place when nickel is in short supply over extended periods characterized also by high prices. Alternate materials are available to take the race of nickel in most of its uses, except super alloys in aerospace applications. However, with few exceptions, using alternate materials might entail increased cost or some sacrifice in physical or chemical characteristics and hence would affect the quality of the product. In aerospace applications, considerable time and money must be spent for qualifying tests for specific aerospace usage. 35. The mosL likely areas in which other materials could be substituted for nickel are those in which nickel-bearing material is used for its corrosion resistance, high-strength, or special magnetic and electronic properties. For example, carbon steel clad with titanium could perform satisfactorily in many applications now filled by stainless steel and high-nickel alloys. Some plastics may have corrosion resistance comparable to nickel-bearing corrosion resistant materials under certain service conditions, but do not possess similar physical properties. While plastic or other coatings on steels are comparatively inexpensive, a high risk of damage in service limits their selection to less critical applications. Paint, enamel, or aluminium can be used in place of nickel-chromium in decorative trim. Cobalt may be used instead of nickel in electroplating applications. Several combinations of metals and non-metals are acceptable for use in storage batteries in addition to, or as a substitute for, nickel-iron and nickel-cadmium combinations depending on service requirements. Some of these nickel substitutions were commonplace in 1967-69, when nickel was in short supply, but were not always completely satisfactory. MDF/W/21 Page 20

36. While each application must be usually considered on its own merits and many criteria are taken into account in considering alternative materials as potential substitutes for nickel, the following list provides a general indication of the range of substitution possible: aluminium, coated steel and plastics in the construction and transportation industries; nickel-free speciality steels in the power-generating, petro-chemical and petroleum industries; titanium and plastics in service applications; and platinum, cobalt copper in some catalytic uses. Stainless steel containing chromium, manganese, and relatively little nickel can be used in place of the conventional 300 series steels for some applications. Columbium, molybdenum, chromium, and vanadium can replace nickel in some alloy steels, and cobalt-, chromium-, and columbium-base alloys can be used in place of some nickel-base super-alloys. Manganese, molybdenum, and copper can be used in place of nickel in some types of iron castings, and the modified stainless steels described above can also be used in some cast forms. 6. Structure of the world nickel industry 37. The world nickel industry has undergone considerable changes in the geographical pattern of production and trade in the past three decades. In the early 1950s, Canada alone produced over 66 per cent of the total primary nickel production with most of the rest being accounted for by the USSR (about 20 per cent), New Caledonia (about 6 per cent) South Africa and Cuba (about 4 per cent). Since then, various other countries have become producers and some expanded their original small capacities considerably. Greece, Finland and Australia entered the production scene in the 1960's, and Albania, Brazil, the Dominican Republic, China, Indonesia, the Philippines, Botswana and Guatemala during the 1970's. Since 1982 Colombia and Yugoslavia have become producers. There are at present twenty-six producing countries and other countries with long-term mine production prospects include Burundi, Ivory Coast, Upper Volta, Zaire, Tanzania and Saudi Arabia. At the same time, production capacity has been expanded in various countries particularly in New Caledonia, Australia, Cuba the USSR and South Africa. The result of these developments is a decline of the Canadian share of world mine production to about 25 per cent in 1983 and a much lower degree of concentration in the primary production of nickel. The geographical pattern of smelter and refined production (ferro-nickel, oxide sinter, briquettes, powder, etc.) is less concentrated than mine production, since part of the Canadian, New Caledonian, Indonesian, Australian and other mine production is exported to Western Europe, the United States and Japan for refining. 38. In the past, corporate ownership of production in the nickel industry was one of the most concentrated in the world metal economy . In 1950 there

¹In 1978 four leading companies in the market economy countries accounted for 64 per cent of the world nickel mining capacity and 60.4 per cent of processing capacity. Comparative concentration ratios for other major metals were the following: alumina refining 51.5; Bauxite mining 48.6; aluminium smelting 43.3; copper mining 37.6; iron ore mining 37.3; copper smelting 34.0; lead refining 27.7; copper refining 27.4; zinc reduction 27.2; steel mining 21.2. Source: Nickel Industry and the Developing Countries. United Nations, New York 1980-ST/ESA/100) MDF/W/21 Page 21

were three producers in two countries (i.e. International Nickel Company (INCO) and Falconbridge in Canada, and Societe Metallurgique le Nickel (SLN) in New Caledonia) accounting for practically all production in the market economies with INCO alone controlling about 85 per cent of the total world output. Market developments in the mid-1950s and technological breakthrough in the 1960s which led to greater development of laterite deposits around the world resulted in the gradual decline in the dominance of INCO so that by 1982 it controlled only 22.0 per cent of world mine production and 26.5 per cent of world metal production. In 1982 there were forty- our producers in twenty-six countinue some of which are state owned. Table 4 shows the corporate shares of nickel production in the market economy countries while Table 5 shows the country distribution of producing companies. 39. The three companies mentioned above, INCO, Societe Metallurgique le Nickel (SLN) and Falconbridge Limited accounted for about 35 per cent of world mine output and about 42 per cent of metal production in 1982. INCO currently operates of mines, ore concentrators, smelters and refineries in Canada, a refinery at Clydach in Wales (Great Britain), a mine and smelter in Indonesia and an integrated rolling mill at Huntington in Virginia (USA). Falconbridge (7.3 per cent of world metal production in 1982) operates mines and smelters in Canada and the Dominican Republic. The smelted matte from Falconbridge in Canada is shipped to the firm's refinery at Kristiansand, Norway, where cathode nickel, nickel plating anodes, and nickel sulfate are prod ced along with other associated metals. Societe Metallurgique le Nickel (8.2 per cent of world metal production) operates a number of mines and a smelter in New Caledonia as well as a refinery at Sandouville in France. It also exports a substantial part of its production of ore to Japan. About forty-one other companies account for the remaining world nickel production in the market economies and their share of the market is likely to expand in the future. Western Mining of Australia, the NONOC Mining and Industrial Corporation of the Philippines, and the Sumitomo Metal Mining Co. Ltd., of Japan, and AMAX (Nickel Division) of the United States are the major companies among these. Western Mining Corporation Ltd., of Australia is the largest among the newcomers. It started its operations in the late 1960s and has expanded rapidly to obtain about 4.8 per cent of world output in 1982. The AMAX Nickel Division of AMAX Inc., which began production of nickel late in 1974 from imported nickel-copper matte accounted for 4.6 per cent of world metal production in 1982. 40. Of the total nickel produced from centrally-planned economies the Soviet Union account for about 80 per cent mainly from its Norilsk mines.

¹It is estimated that Government ownership accounts for about 40 per cent of current world production capacity. Besides the centrally-planned economies and China, other countries where the governments own majority interests either directly or indirection in finished nickel producing companies are Cuba, Finland, Greece, Indonesia, New Caledonia, the Philippines and Yugoslavia. Countries where the government owns less than 50 per cent equity interest are Colombia and the Dominican Republic. ²ERAP, the French state-owned energy group bought 70 per cent of SLN in May 1983. Former owners of SLN, Imetal and Elf Aquitaine reduced their shares to 15 per cent each. MDF/W/21 Page 22 Table 4 Corporate Shares of World Nickel Production 1982

Corporation Share of mine production S Share of netal production z Producer (ownership per cent) Producer (ownership per cent)

Inco Total 22.0 Total 26.5 Inco(100) Canada Inco (100) Canada 22.7 PT Inco Indonesia(97) Indonesia 2.8 Inco (100) UK 3.8

Falconbridge Total 6.9 Total 7.3 Falcombridge(100) Canada 4.3 Falconbridge(100) Norway 4.8 Falc.Dominicana(66) Dom.Rep. 2.6 Falc.Dominicana(66) Dom.Rep. 2.5

ERAP¹ Societe Le Nickel(70) N.Caledonia 6.1 Total 8.2 Societe Le Nickel(70) N.Caledonia 5.6 Societe Le Nickel(70) France 2.6

AAC² Total 5.0 Total 4 3.7 BCL (30) 5 Botswana 2.8 Sherrit Gosdon (40) Canada 2.1 Rustenburg (57) S.Africa 2.2 Rustenburg (57) S.Africa 1.6

Western Mlning Western Mining (100) Australia 4.8 Western Mining (100) Australia 4.8

Marinduque Marinduque (100) Philippines 3.1 Marinduque (100) Philippines 3.0

Amax BCL3 (30) Botswana 2.8 Amax (100) US 4.6

Free Port McMoRan Queensland Nickel(50) Australia 1.7 Queensland Nickel(50) Australia

Metals Exploration Queensland Nickel(50) Australia 1.7 Queensland Nickel(50) Australia 1.3

Aneka Tambang Aneka Tambang(100) Indonesia 1.7 Aneka Tambang(100) Indonesia 0.7

BP Agnew6 (60) Australia 1.5

Hanna Hanna (100) US 1.4 Hanna (100) US 1.2

Larco Larco (100) Greece 1.1 Larco (100) Greece

Gencor Impala Platinum(49.6) S.Africa 1.0 Impala Platinum(49.6) S.Africa 0.9

Outokumpu Outokumpu (100) Finland 0.9 Outokumpu (100) Finland 1.7

Rio Tinto-Zinc Rio Tinto Zimbabwe(58)Zimbabwe 0.6 Rio Tinto Zimbabwe(58) Zimbabwe 0.4

Sumitomo. Sumitomo (100) Japan 4.7

Nippon Mining Nippon Mining (100) Japan 1.8

Total 62.9 73.9

¹ERAP, the French State-owned energy group bought 70 per cent of SLN in May 1983. Former owners of SLN, Imetal and Elf Aquitaine, reduced their shares to 15 per cent each. ²AAC group. The head of the group is Anglo-American Corporation of South Africa. Other important members of the group are MINORCO (Minerals and Resources Corporation, based in Bermuda) and De Beers. ³Bamangwato Concessions Ltd. BCL is 85 per cent owned by Botswana RST. in which AAC and Amax have a 30 per cent stake each. 4AMC group (through MINORCO) owns 29 per cent of the British-based investment corporation Consolidated Gold Fields, which owns 25 per cent of the US-based investment corporation Newmont Mining, which in turn owns 40 per cent of Sherrit Gordon. 5AAC directly owns 24 per cent of Rustenburg. AAC group bas another 33 per cent stake in Rustenburg through 40 per cent owned Johannesburg Consolidated Investment. 6BP owns the British-based investment corporation Selection Trust, which owns 60 per cent of Agnev. The balance is held by the US Copper Corporation ASARCO. Source: Roskill's Metal Data Book 1983; Annuaire Statistique Minimet (edition 1982), Mining Annual Review 1982; Corporate annual reports. Table 5 NICKEL

Principal worid nickel producers -_ Country .Company - Nickelproducts 1 - Western Mining Corp. Ltd Nickel and mate. Cueensiand Nickel Pty ...... Nickel oxide and mixed nickel-cobalt sulfides SoicastPtyWestern Ltd...... _..... Nickel matte. ML Isa Mines Ltd ...... Nickel matte Botwana BotswanaR.nhla . .S.To ...... -.; Nickkcopper-cobaltmatte. Morrodo NiquelZ ...... Ferronickel. Companhla Tocantins...... Nickel métal and nickel carbonate. Codemin...... ;"...... Ferronickel INCO, Ltd...... Nickel oxide sinter, soluble nickel oxide, nickel metal (cathode and pellets), utility shotand pig. Falconbridge, Ltd...... Nickel-copper matte. Sherritt Gordon Mines Ltd ...... Nickel metal. Econiquel...... Ferronickel. Cuba Cubaniquel (State owned) ...... Nickel oxide and sulfide. Falconbridge Dominicana C. Por A...... Ferronickel. Outokumpu Oy (State owned...... Nickel metal. France Société Metallurgique le Nickel (SLN) ...... Nickel métal, oxide, salts, Greece w LARCO Société Minlère et Metallurgtque de Larymna S ...... :...... Ferronickel. Exploraciones y Explotaciones Minéras Izabel (INCO. Wd.)...... Nickel matte. . _ P.T. International Nickel Indonosla (INCO, Ltd.)...... Nickel matte. P. T. Aneka Tambang ...... Fernonickel. . . _ Sumitomo Metal Mining.Co.,Ltd ...... Nickel metal, ferronickel, nickel chemicals. Nippon Yakun Kogyo Co.,Ltd ...... Ferronickel. Nippon Mining Co. Ltd ...... Ferronickel and nickel metal. Pacifio Metals Co., Ltd...... Nickel oxide and ferronickel. Nippon Nickel Co...... Nickel oxide. Tokyo Nickel Co...... Nickel oxide. New Caledonia _ Société Metallurgique le Nickel (SLN)...... Fefronickel shot and matte Norway Falconbddge Nlkkeiverk AS...... Nickel metal. 33 Philippines Mainduque MlnIng Coip...... Nickel briquets, powder, nickel-cobalt sulfides. PageMDF/W/21ç n South Africa, Republic of.. . Rustenburg Platinum Mines,Ltd...... Nickel métal. -.. Impala Ptatinum Mines, Ltd ...... ; Nickel metal. Matte Smelters W...... Nickel matte. w' Pty., à U.S.S.R State owned ... Nickel metal and matte United Kingdom. IN C ,Ltd...... Nickel metal and nickel-cobalt salts United States Hanna Mining Co...... Ferronickel. AMAXNickel DMson, AMAX Inc...... Nickel briquets and powder. State owned ...... Ferronickel. Source: US bureau of Minies MDF/W/21 Page 24

7. Pricing in the nickel industry 41. Until recently structure of prices in the nickel trade comprised three main elements, the producer price set by the major producers and followed by most other producers, the free market price, and the London Metal Exchange price quotations for nickel which have been practised since 1979. 42. The producer posted price at which most of the trade in nickel was transacted until recently, was the result of the oligopolistic situation prevailing in the nickel industry in the 1950s and 1960s when the three major producers INCO, SLN and Falconbridge controlled the major part of total world production. The three acted as price-setters with their posted prices closely aligned, but in fact it was INCO which set and published prices. INCO's price was quoted f.o.b. refinery, Port Colborne, Ontario, or Thompson, Manitoba. Falconbridge quoted the same price f.o.b. Tharold, Ontario. The price of SLN, a major part of whose output is sent from New Caledonia to France was quoted c.i.f. at a French port, based on the Port Colborne price. The prices were quoted in US dollars and until 1965 they included the United States tariff. 43. The other producers, the price-takers, have followed the producer price thus set. However, many of them especially the newcomers have tended to practise discounting in order to win a bigger share of the market. While producer prices are still posted, currently less than 2 per cent of nickel sales are at these prices. Some high quality nickel is sold at these prices in specialized markets, such as certain carbonyl powders for nickel cadmium batteries. In response to depressed market conditions in 1982, producers were forced to basically abandon the producer pricing system and sell on the basis of LME or merchant prices, as is in the case of most other metals. 44. In addition to marketing on the basis of the producer price, there has been a smaller but growing open market for the sale of secondary nickel (scrap), as well as primary nickel. The latter has been fed partly by the USSR and other centrally-planned countries until the nickel trading at the London Metal Exchange started in 1979, partly by independent producers in the market economies, and partly by merchants or consumers who resell the metal they receive from the major companies. This is not an organized market but price quotations attributed to it have been published in the Metal Bulletin since 1966.

¹The INCO price for electrolytic cathodes (99.7 per cent nickel) f.o.b. shipping has been selected as the benchmark prices. Prices of the remaining categories of nickel were usually established according to staple differentials. Since 1972, the prices of ferro-nickel, incomet and sinter have been lower than the price of nickel cathode by about 6 per cent, 10 per cent and 15 per cent respectively. ²The prices in this market are known to fluctuate heavily. In some years when primary nickel supply has been extremely tight, the demand for open market nickel and for pure nickel scrap has been very strong and sales have invariably commanded a large premium over the producer price. MDF/W/21 Page 25

45. The third element in the price structure of the nickel market is supplied by the price quotations of the London Metal Exchange on which forward nickel trading was introduced in April 1979 followed in July of the same year by spot trading. The volume of nickel trading on the LME has been relatively small but has been growing rapidly. Moreover, it handles much of the nickel exported by the Soviet Union. The LME is not only a market where metal is physically sold and bought, it is important as a hedging market and a clearing market for the production of marginal producers. As an open market where the metal is freely traded its most important function is that of a price settel,whose price quotations, reflecting fundamental market conditions but sometimes also ephemeral external influences have, since 1982, served as the basis for sales contracts concluded directly between producers and customers. Price determination 46. Basically the producer price is expected to reflect the cost of production, with adjustment for inflation, as well as the demand and supply situation for primary nickel on the market and the level of stocks. The most important direct cost factors are the cost of materials, energy, labour, freight and overheads. In this regard there are basic differences depending on the nature of the ore being mined and processed. Table 6 gives estimated costs of nickel production in different mining operations. Chart II, on the other hand shows the levels of cash operating costs of thirteen mining companies in ten different countries. 47. While nickel production from sulfides is labour-intensive that from laterite is relatively energy intensive. About two-thirds of the required energy is used at the mining and primary processing stage. For laterites, energy is estimated to account for between 40 to 60 per cent of total operating costs. The lower ratio tends to apply where hydro-electric power is the main source of energy (e.g. in some operations in New Caledonia,

¹The LME prices are established at the end of each daily trading session of the LME, indicating a spot price and a three month futures price. These prices are subject to wide fluctuations from a number of factors directly influencing the market such as production short-falls or over-production on the supply side and up-swings or down-turns in economic activity in the consumer countries on the demand side. At the same time, developments unrelated to the industry as such, such as interest rate or exchange rate movements, may also lead to fluctuations in prices. 2 For example energy costs per pound of nickel in 1974 were estimated to be 10 cents (US) for Canadian sulfide ores, while the corresponding figures for laterite ores were between 41 to 56 cents per pound. For more detail see Hilmy (1979) p.53. Page6 Table 6 MDF/W/21 Estimated costs of nickel production in 1975, before tax 0s N- (Current dollars per pound of nickel)

Falconbridge- Falconbridge- Société Japanese Costa INCO Sudbury Dominicana Le Nickel producers

Direct conte Labour 0.46 0.50 0.22 0.53 0.26 Energy o.o6 0.07 0.60 0.59 0.58 Ore _ - - 0.67 Freight, etc. _ 0.24 0.07 0.10 0.21 Other 0.47 0.75 0.35 0.26 0.17 Total direct coste 0.99 1.56 1.22 1.148 1.89 Overhead costs Selling and administration 0.14 .0.11 0.05 0.08 0.08 Depreciation 0.10 0.17 0.15 0.34 0.19 Interest 0.05 0.02 0.27 0.18 0.25 Other 0.04 0.27 0.05 0.07 0.08 Total overhead costs 0.33 0.57 0.52 0.67 0.60

TOTAL 1.32 2.13 1.74 2.15 2.49

Source: Commodities Research Unit, Ltd. COST Souce: INDEX a,) c" o o o o o O o o o coo,ta o

O_.(INCO-THOMPSON

INCO-SUDBURY

~~~CD WESTERN MINING I >~~~~~~~~~~~~~ FALCONBRIDGE-SUDBURY Q 'm CERRO MATOSO m > FALCONBRIDGE DOMINICANA

O SLN (ferronickel only) H GREENVALE MARINDUQUE z PT INCOu

| ~~~ ~ ~ ~~~~~~~~~~~~~AMAX ~~~~~~~~~~~~~~~~~~|~~~~~~FENI ~~~~~~~~~~~~~~~~~~LARCO1 ~ MDF/W/21 Page73u ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(a _ _ MDF/W/21 Page 28

Indonesia and Brazil) while the higher ration applies where oil is used' (e.g. Dominican Republic). Until 1973, the operating cost of nickel from laterites was about 40 per cent more expensive than that from sulfides. The cost differential widened in the late 1970s due to the increase in the price of petroleum, but has narrowed somewhat more recently with the fall in the real price of oils. The remaining part of the total operating cost is generally divided between labour, materials and overhead in the ratio of 2.5:1:1 respectively for production of nickel from su fide ores and 1:1.5:1 respectively for obtaining nickel from laterite ores. In addition to operating costs, capital requirements to produce a ton of nickel from laterites are generally about 70-80 per cent higher than those for producing nickel from sulfides. On the whole it is estimated that the cost of mining and processing laterite ores is roughly about 130-140 per cent of producing nickel from sulfide sources. 48. Other than the cost elements discussed above the main short-term factors which had greatly influenced prices have been the level of stocks which are in turn influenced by the level of interest rates; labour problems, especially strikes; and more importantly the oligopolistic structure of the industry which had meant one major producer eventually acting as the price setter. 49. The producer prices should theoretically reflect market conditions and forces. In reality the three major producers acting as price setters have preferred to practice a policy of price stability. This has implied that prices were first set and then production planned according to the current and expected market conditions. However, when expectations were proved wrong the price was usually maintained rather than letting it respond to the market situation, thus placing the burden of market equilibrium on the supply side. Consequently the industry has tended to experience periods of shortage and over-production leading to production cut-backs, stock accumulation and de-accumulation. Such imbalances, alongside with other factors did influence price and production plans of the next period.

¹Energy cost increases have a significant effect on the cost of nickel. Estimates indicate that for every US$1 increase in the price of a barrel of crude oil, there is a corresponding cost increase of 5 cents per pound of nickel produced. Increased fuel oil prices affect the cost of producing nickel from laterites more than they affect the cost of producing it from sulfides. This occurs principally because fuel oil is used to dry wet lateritic ores, which contain about 25 per cent moisture, and to generate electrical energy used to smelt the dried unconcentrated ores to matte or ferro-nickel, as is done in New Caledonia. On the other hand, nickel sulfide ores can be concentrated by flotation techniques, and nickel metal can be recovered with generally cheaper hydroelectric energy, as is done in Canada and Norway. The availability of hydroelectric power in Colombia and Indonesia has been one important factor in permitting development of nickel mining and processing facilities in those countries. (Mineral Commodity Profile 1983).

²Nickel Handbook - World Bank - 1981. ³Kiel Working Paper No. 160 - Pg.19 - University of Kiel - Institute for World Economy, 1982. MDF/W/21 Page 29

50. Demand and supply elasticities may also help to explain the policy of price stability yhich has been practised by the major producers. The short-term price elasticity of demand in the industrialized market economies has been estimated to be less than a unit while long-term demand has unit elasticity. This meant that short-term changes in prices were not likely to affect demand significantly. The price elasticity of the supply of nickel has been estimated to be close to a unit in the short-term but significantly greater than a unit in the long run. In the long-term price trends are determined by the shape of the industry cost curve and in this regard one major factor has to be considered. In future the greater part of land-based production would come from laterite ores which are a high cost source.

SECTION II: Production, Consumption and Prices 8. Mine production (Tables 7 and 8) 51. Mine production of nickel has grown considerably during the last two decades and a half, and especially between 1960 and 1980. From a total of 342,000 metric tons mine production grew at 4.3 per cent per annum to 740,000 tons in 1980. With the beginning of the world economic recession in 1980 and a fall in demand, production fell drastically to 633,000 metric tons in 1982. The recovery in the world economy which began late in 1982 led to a resurgence in mine production in 1983 with producers re-opening plants and reversing production cutbacks necessitated by the recession. New mines were opened in Colombia, Brazil and Yugoslavia. Table 7 shows the evolution of the world's mine production of nickel since 1960 and its geographical distribution and Chart III gives the same information in a diagrarmatic form. 52. The trend of increasing production continued in the first half of 1984, as both the major producers INCO and Falconbridge boosted production rates, joined by several other producers eager to take advantage of the increased demand. Capacity utilization in 1984 was estimated to have risen from 56 per cent (1983) to 66 per cent, compared with 80 per cent in 1980. 53. The geographical pattern of nickel mine production has also changed considerably since 1960. At 69,000 metric tons in 1960, the production of the developing countries increased approximately 6.8 per cent per annum to reach 257,000 metric tons in 1980 but fell to 217,000 metric tons in 1983. The production of the developing countries represented 20.2 cent of the world total in 1960, approximately

'Nickel on the other hand is considered to have a relatively high income elasticity of demand. This has been used to explain on the one hand the fast growth in consumption in the fast industrializing countries characterized by high rates of income growth and on the other hand the relative stagnation and even falls in nickel consumption in countries where industrialization has reached a mature stage. In this last case substitution might also play a role. For discussions on demand and supply elasticities in the nickel industry (see Nickel Handbook - World Bank 1981). For a study of price elasticity of supply (see Kiel Working Paper No. 16 - "An Econometric Model of the World Nickel Industry - Institute for World Economy, University of Kiel 1981"). Table 7 Page30 World Production of Nickel, 1960-1983 MDF/W/21

(in thousand metric tons metal content) - - Mine Production Smelter Production(l) b) 1960 1965 1970 1973 1975 1979 1980 1981 1982 1983 1960 1965 1970 1973 1975 1979 1980 1981 1982 1983 World 342 435 666 678 753 674 740 716 633 655 325 413 607 643 693 663 750 700 620 686 countries 69 95 203 209 236 251 257 255 225 217 28 43 74 96 123 114 115 103 92 114 Developingand territories of

Botswana - - - - 6 16 15 18 18 18 _ ------Brazil _ _ _ 4 3 3 4 7 13 il - - - 2 2 2 2 2 5 il Colombia _ _ _ _ 5 16 ______1 13 Cuba(2) 14 29 40* 35 37 32 38 40 38 40 14 26 38* 17 18 19 20 21 21 21 Dominican Rep.(3) _ - _ 30 27 25 15 18 5 20 - - - 30 27 25 16 19 6 20 Guatemala _- - 6 7 ------Indonesia - 2 il 16 15 36 40 45 48 38 - - - - - 4 4 5 4 4 Morocco ------New CaIedonia(4) 53 61 139 113 129 80 87 78 60 46 il 16 28 36 53 30 33 28 28 22 Philippines(5) _ _ - 9 33 35 29 20 14 _ _ _ - 9 19 23 19 10 8 Yugoslavia _ _ _ _ _ - 2 3 l* _- - - - - 1 1* Zimbabwe _- il 9 19 14 15 13 Il I11*l_ 13* 15* 15* 12* 15* 13* Other 2 3 13 ------3 1 8 ------Developed countries 211 255 346 342 373 254 316 287 213 239 235 286 416 404 410 365 448 400 316 356 ofwhich _ Australia - - 27 40 76 70 74 74 88 79 _ _ _ 20 33 39 35 42 4.6 42 Austria* _ _ ------1 2 2 Canada 195 235 279 249 242 126 185 160 89 122 127 160 204 158 158 84 152 109 65 96 EEC:(6) - - 9 14 15 15 14 il 5* 13* 46 49 57 61 64 36 43 46 19 41 Germany,F.R. _- - - - 2 - 1 ------France------10 8 Il 10 il 3 10 10 7 5 Greece(3) - - 9 14 15 15 14 il 5* 13* - - 9 14 15 15 14 il 5 13 United Kingdom ------34 40 37 37 39 19 19 25 7 23 Finland 2 3 S 6 6 6 6 7 6 5 - 3 4 6 6 il 13 10 13 15 Japan------19 26 90 88 78 106 109 94 87 82 Norway _- - - 1 - 1 1 - - - 30 32 38 43 37 31 37 37 26 29 South Africa 3* 5 12 19 21 25 26 26 22 20 1* 3* 9* 15 14 18 18 17 17 18 United States(7) Il 12 14 13 13 il 10 9 3 - 12 13 14 13 20 40 40 44 41 31 Centrally-palnned 62 85 117 127 144 169 167 174 195 199 62 84 117 144 160 184 187 192 212 216 economics, of which: Albania - - - 6 6 8 8 9 9 9 - - - - - 4 4 4 4 4 China, P.R.* - _ _ 7 8 il il il 13 15 - - - 7 8 il il 12 12 13 Czechoslavakia* ------3 3 2 2 2 I 3 GermanyD.R. _ _ 2 2 2 3 3 2 2 - - - 2* 3* 3* 3* 3* 3* 3* Poland 1 1 -2* If 1* 1* 1* 1* 1* - 1 1 2 2 2 2 2 I I - USSR* 58 80 110 110 125 145 143 150 170 172 58 80 110 130 143 160 165 170 190 192 Other* 2 3 5 ______2 3 5 _ _ _ _ _

1) Primary nickel and nickel containtedin ferro-nickel, nickel oxide sinter and metal details smelted directly from ores. 2) Smelter production figures indicate nickel content in oxide sinter. 3 Nickel content in ferro-nickel (smelter). (4) Since 1973 figures of mining production indicate the nickel content only, any co-content being excluded. Nickel content of ferro-nickel, nickel matte and exported ores totalled as follows: AA A A 1973 1915 1919 1'Ru LWl I9éz 1 Smelter Products 57T 71-t *42-6 148.tx "i 157 6. 6(in thousid nmtric tom) Importes Ores 50.6 43.3 38.5 36.9 29.8 27.8 19.9 5) Excluding nickel nickel-cobalt sulphides (smelter). 6) For comparative purposes total figures for the EEC include ten number states for the whole period. 7)Mining production figures indicate recovered nickel content in ferro-nickel and as by-product in copper refineries. Nickel content of ores mined in thousand metric tons was as follows: 1960: 12.8; 1965: 14.7; 1970: 16.3; 1973: 16.6; 1975: 15.4; 1979: 13.7; 1980: 13.3; 1981: 11.0; 1982: 3.6; 1983: 0.4. * Figures based on estimates. (-) nilor less than 500 metric tons. Source: Metal Statistics 1960-1970, 1973-1983, Metallgesellschiaft AG. Table 8 World Production of Nickel, 1960-1983 (as a percentage of world production) Mine Production Smelter Production(1) 1960 1965 1970 11973j 19751 1979j 1980 1 1981 1 1982 198 [1960 3916I 197 _1937 1 1975 L 1979' 180 _9811_92 _1833 World 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1100.0 100.0 100.0 100.0 100.0 100.0 100.0 10.0 100.0 Developing countries 20.2 21.8 30.5 30.8 31.3 37.2 34.7 35.6 35.6 33.1 8.6 10.4 12.2 14.9 17.7 17.2 15.3 15.4 14.8 16.6 and territories

Botswana - - - - ~~~~ ~~~~2.4~~0.82.0 2.5 2.8 2.7 -. - - - Brazil - - 0.6 0.4 0.4 0.5 1.0 2.1 1.7 - - - 0.3 0.3 0.3 0.3 0.3 I0.8 1.6 Colombia ------0.8 2.4 ------0.2 1.9 Cuba(2) 4.1 6.7 6.0* 5.2 4.9 4.7 5.1 5.6 6.0 6.1 4.3 63 j, 6.3* 2.6 2.6 2.9 2.7 3.0 3.4 .3.1 Dominican Rep.(3) - - - 4.4 3.6 3.7 2.0 2.5 0.8 3.1 - - - 4.7 3.9 ~3.8 2.1 2.7 1.0: 2.9 Guatemala - - - - - 0.9 0.9 ------:- . . . . - - Indonesia 0.5 1.7 2.4 2.0 5.3 5.4 6.3 7.6 5.8 - '- 0.6 0. -7 06 . Morocco ------New Caledonia(4) 15.5 14.0 20.9 16.7 17.1 11.9 11.8 10.9 9.5 7.0 3.4 3.9 I4.6 5.6 7.6 4.6 4.4 4.0 4.6 3.2 Philippines (5)- - - - 1.2 4.9 4.7 4.1 3.2 2.1 - -I - 1.3 2.9 3.1 2.7 1.6 1.2 ------0.3 0.5 0.2* ------0.2 0.1* - - 1.6 1.2 2.8 1.9- 2.1 2.1 1.7 - - - 1.7* 1.9* 2.3* 2.0* 1.7* 2.4*~ 1.9 Other ~~~0.6 0.7 2.0 ------0.9 0.2 1.3 ------Developed countries 61.7 58.6 52.0 50.5 49.6 37.7 42.7 40.1 33.6 36.5 72.3 69.2 68.5 62.8 59.2 55.1 59.7 57.1 51.0 51.9

Australia - - 4.1 5.9 10.1 10.4 10.0 10.4 13.9 12.1 -- 3.1 4.8 5.9 4.7 6.0 7.4 6.1 Austria- - - - .------0.1 0.3 0.3 Canada 57.0 54.0o 41.9 36.7 32.1 18.7 25.0 22.3 14.1 18.6 39.1 38.7 33.6 24.6 22.8 12.7 20.3 15.6 10.5 14.0 EEC:(6) - - 1.4 2.1 2.0 2.2 1.9 1.5 0.8* 2.0* 14.2 11.9 9.4 9.5 9.2 5.4 5.7 6.6 3.1{6.0 Germany,F.R.------0.6 - 0.2 - - - - - France 0.1 1.9 1.8i 1.6 1.6 0.5 1.3 1.4 1.li 0.7~ Greece(3) - - 1.4 2.1 2.0 2.2 1.9 1.5 0.8* 2.0* - .- 1.5 2.2 2.2 2.3 1.9 1.6 0.8 1.9 United Kingdom ------10.5 9.7 6.1 5.8 5.6 2.9 2.5 3.6 1.1 i3.4 Finland 0.6 0.7 0.8 0.9 0.8 0.8 0.8 1.0 0.9 0.8 - 0.7 0.7 0.9 0.9 1.7 1.7 1.4 2.1 2.2 Japan ------5.8 6.3 14.8 13.7 11.3 16.0 14.5 13.4 14.0 12.0 - - - 0.1 - 0.1 0.1 - - - 9.2 7.7 6.3 6.7 5.3 4.7 4.9 5.3 4.2 4.2 SouthNorwayAfrica 0.9 1.1 1.8 2.8 2.8 3.7 3.5 3.6 3.5 3.1 0.3* 0.7* 1.5* I2.3 2.0 2.7 2.4 2.4 2.7 2.6 United States(7) 3.2 2.8 2.1 1.9 1.7 1.6 1.4 1.3 0.5 - 3.7 3.1 2.3 2.0 2.9 6.0 5.3 6.3 6.6 4.5 Central planned 18.1 19.6 17.6 18.7 19.1 25.1 22.6 24.3 30.8 30.4 19.1 20.3 19.3 22.4 23.1 27.8 24.9 27.4 34.2 t31.5 economies,of which: , Albania - - - 0.9 0.8 1.2 1.1 1.3 1.4 1.4 - - - - - 0.6 0.5 0.6 0.6 0 6 China.P.R.* - - - 1.0 1.1 1.6 1.5 1.5 2.1 2.3 - - - 1.1 1.2 1.7 1.5 1.7 1:9 1:9 Czechoslovakia* ------0.5 0.4 0.5 0.3 0.3 0.2 0.4 Germany, D.R. - - - 0.3 0.3 0.3 0.4 0.4 0.3 0.3 - - 0.3* 0.4* 0.5* 0.4* 0.4* 0.5* I Poland 0.3 0.2 0.3* 0.1* 0.1* 0.1* 0.1* 0.1i* 0.2* 0.3 0.2 0.3 0.3 0.3 0.3 0.3 0.1 0.2 USSR* 17.0 18.4 16.5 16.2 16.6 21.5 19.3 20.9 26.9 26.3- 17.8 19.4 18.1 20.2 20.6 24.I 22.0 24.3 30.6 Other* 0.6 0.7~ 0.8~ ------~ 0.6 0.7 0.8 * - -1: - -

(1) Primary nickel and nickel contained in ferro-nickel,* nickel oxide sinter and monel metals smelted directly from ores. (2)Smelter production figures indicate nickel content in oxide sinter. (3) Nickel content in ferro-nickel (Smelter). (4) Since 1973 figures of mining production indicate the nickel content only. any co-content being excluded. Nickel content of ferro-nickcel, nickel matte and exported ores follows: 1973 1975 1979 1980 1981 1982 1983 Smelter Products -57 71.1 AV "-t -4. 35" 26 (ln thousand roetric tons) ExportedOres 50.6 43.3 38.5 36.9 29.8 27.8 19.9 (5) Including mixed nickel-cobalt sulphides (Smelter). (6) For comparative puposes total figures for the EECinclude ten member states for the whole period. Mining production figres Indicate recovered nickel content in ferro-niquel and as by-product in copper refineries. Nickel content of ores mined in thousand metric tons was as follows:(7) 1960: 12.8; 1965: 14.7; 1970: 16.3; 1973: 16.6; 1975: 15.4; 1979: 13.7; 1980: 13.3; 1981: 11.0; 1982: 3.6; 1983: 0A.4 Figures based on estimates. nil less than 0.1 per cent. Source: Metal Statistics 1960.-1970, 1973-1983, MetaIlgesellschaf t AG. CHART III Page32 WORLD MINE PRODUCTION OF NICKEL MDF/W/21 rJ

800-

------

700------WORLD -----

------

600-_ ------OTHER

500- o CUBA

INDONESIA 400- AUSTRALIA

NEW CALEDONIA 30 0-,

200- USSR

CANADAANADA 100-

Il 1 'i i I . . . .- . . . I u II.u . I I I I- 1950 1956 1960 1965 1970 1975 1980

Source: Supplied by the Department of Energy, Mines and Resources, Canada. MDF/W/21 Page 33

34.7 per cent in 1980 and 33.1 per cent in 1983. Among the developing countries themselves the pattern of production has also changed considerably. In 1960 New Caledonia and Cuba accounted for practically all the share of developing countries, by 1983 this share was accounted for, other than New Caledonia (21.2 per cent), by Botswana (8.3 per cent), Brazil (5.1 per cent), Colombia (7.4 per cent), Dominican Republic (9.2 per cent), Indonesia (17.5 per cent), Cuba (18.4 per cent) Philippines (6.4 per cent), Yugoslavia (0.5 per cent) and Zimbabwe (5.1 per cent), not counting Guatemala where production has been suspended since 1981 by INCO as a rationalization measure in view of the fall in world demand. The production of New Caledonia has fallen from a high of 151,000 metric tons in 1971 to 87,000 metric tons in 1980 and 46,000 metric tons in 1983. The production of Cuba has stagnated around 40,000 metric tons since 1970 with a low of 32,000 metric tons in 1979. It is, however, expected to increase production in the late 1980s with a ney 30,000 tons per annum mine and plant coming on stream at Punta Gorda. It remains however, the fourth largest producer in the world after USSR, Canada and Australia. The other developing countries where production levels were fairly well maintained during the 1980-82 world economic recession were Botswana and Indonesia, however in the case of the latter country there was a sharp fall from 48,000 tons in 1982 to 38,000 tons in 1983. Morocco has a small production equivalent to about 500 metric tonnes of metal content. As developing countries possess over 50 per cent of world resources, they haEe long-term prospects of producing the major part of world mine production , however, as high-cost laterite ore producers they are bound to be more vulnerable to cyclical changes in demand. 54. The developed market economy countries accounted for about 61.7 per cent of total mine production in 1960 with a total production of 211,000 metric tons. In 1980, with a production of 316,000 tons the share of these countries had fallen to 42.7 per cent and in 1983 this share stood at 36.5 per cent. In 1960 Canada was the only major mine producer among the developed market economies with 57 per cent of total world production, the other producers were Finland, South Africa and the United States. Australia became a major producer in the early 1970s and together with Canada accounted in 1983 for 84 per cent of the total production of developed market economies and 30.7 per cent of total world production. Canada's share of total world mine production stood at 18.6 per cent in 1983, compared with 57 per cent in 1960. The United States has for a long time been only a minor mine producer and in 1982 its only nickel mine was closed

¹Price Prospects for Major Primary Commodities Vol. IV. World Bank 1982, page 51. ²Among the developing countries contemplating expansion of existing mind production or the development of new projects in the late 1980s and early 1990s, are New Caledonia, Indonesia, Colombia, Brazil, Yugoslavia and Venezuela. Whether or not these projects will be implemented would depend upon medium and long-term market prospects. Other developing countries with production ambitions include Burundi, Ivory Coast, Saudi Arabia, Tanzania and Zaire. ³After a temporary shut down in 1982 Hanna resumed ferro-nickel production in December 1983. MDF/W/21 Page 34

55. While it is probably safe to conjecture that in future the share of the developed market countries would decline further, it should be kept in mind that the major developed market producers are in a strong competitive position because of their technological expertise, financial resources and marketing experience and because they possess ready-developed, relatively low-cost ore deposits from which production can be increased more quickly and more cheaply than would be the case for new "green fields" projects elsewhere. 56. The centrally planned economies have increased their production constantly from 62,000 metric tons in 1960 when they accounted for 18.1 per cent of total world production to 199,000 tons in 1983 when they accounted for 30.7 per cent of total production, the same as the developed market economies. In 1960 the only major producing country among them was the USSR; in the early 1970s it was joined by Albania, the People's Republic of China, Germany D.R. and Poland. China's production has increased from 7,000 metric tons in 1973 to 15,000 metric tons in 1983. USSR with a production of 170,000 metric tons in 1983 has become the worlds' largest mine producer accounting for about 26.3 per cent of total world production. Under a five year plan started in 1977 the production capacity of USSR, currently the highest among nickel producers, was to be expanded by 44 per cent from 231,000 to 310,000 tons of nickel content. 9. Smelter production 57. Smelter production of nickel amounted to 324,000 metric tons in 1960 and by in 1983 the volume of production has more than doubled to 686,000 metric tons. Smelter production of nickel is more diffused than mine production. On the one hand due to the corporate structure or the industry some producers in the developing countries export their primary production in the form of ores or concentrates or matte, for smelting and refining in the developed countries. Such has been the case of New Caledonia which exports part of its matte production for refining in France. On the other hand a significant amount of INCOs new output, and the output of Falconbridge from Canada are refined respectively in the United Kingdom and Norway which are not primary producers. Japan processes ores, matte and concentrates imported from New Caledonia and Indonesia. The statistics of smelter production shown in Tables 7 and 8 indicate that in 1983 developing countries including Cuba accounted for 16.7 per cent of the total world smelter production compared with 33.1 per cent of mine production. The 16.7 per cent share of the world production in 1983 compares favourably with the meagre 8.6 per cent in 1960, although it shows a drop from the 17.8 per cent achieved in 1975. In terms of volume, production increased from 28,000 metric tons in 1960 to 114,000 tons in 1983. While New Caledonia and Cuba practically accounted for all smelter production in 1960 it has been joined by other producers such as Zimbabwe, the Philippines, Brazil, Colombia, Dominican Republic and Indonesia. As ferro-nickel is increasingly used in the manufacture of stainless steel thus favouring the

¹Joseph Hilmy - "Old Nick" - An Anatomy of the Nickel Industry and its Future, Commodity Note No. 13, World Bank (September 1979). MDF/W/21 Page 35 exploitation of laterite nickel resources the share of developing countries in smelter production is expected to grow under normal market conditions. The share of developed market countries in smelter production has, on the other hand declined in percentage terms continuously from 72.3 per cent in 1960 to 51.9 per cent in 1983. In volume terms however, production by the developed market-economy countries did grow from 235,000 metric tons in 1960 to 448,000 metric tons in 1980. Since then the economic recession has necessitated production cut-backs and plant shut downs resulting in a production of 356,000 tons in 1983, compared with an estimated production capacity of 658,000 metric tons. This shows a capacity utilization rate of 54 per cent. As has already been pointed out earlier many developed market countries, who are not mine producers or only minor producers such as Japan, United Kingdom, France, United States, Finland and Norway are substantial producers of smelter and refined products. As in mine production Canada is by far the largest smelter producer among the developed countries, accounting in 1983 for 14 per cent of total world production and about 27 per cent of the production of the developed market-economy countries as compared with 39.1 per cent and 54 per cent respectively in 1960. In volume terms the smelter production of Canada increased from 127,000 metric tons in 1960 to about 204,000 metric tons in 1970, since then production has fluctuated downwards to 96,000 metric tons in 1983. Canada is followed in order of importance by Japan, where smelter production has more than quadrupled from 19,000 tons in 1960 to 82,000 metric tons, or 12 per cent of world production, in 1983; Australia, where smelter production has more than doubled over the past ten years from 20,000 tons in 1973 to 42,000 tons in 1983; and the EEC, where production fluctuated upwards from a level of 46,000 tons in 1960 to 64,000 tons in 1975 only to fall back to 41,000 tons in 1983, after a record low of 19,000 tons in 1982. 58. Smelter production in the United States has more than tripled from 12,000 tons in 1960 to 40,000 tons in 1982. The 1983 production figure was 30,800 tons. Refinery production in Norway has been fairly stable with a level of 29,000 tons in 1983 compared with 30,000 tons in 1960. In South Africa where nickel is produced as a by-product of platinum production the level of production has remained fairly stable in recent years at around 17,000 metric tons of refined nickel. 59. The volume of smelter production of the centrally planned economies grew consistently from 62,000 metric tons in 1960 to 216,000 metric tons in 1983. Their share in world production has grown from 19.1 per cent in 1960 to 31.4 per cent in 1983. As in mine production USSR is by far the largest smelter producer among this group of countries with a production of 192,000 metric tons in 1983, compared with 58,000 metric tons in 1960. This makes USSR the largest producer in the world with 28 per cent of total world smelter production.

¹In 1981 Falconbridge - Dominicana temporarily closed its plant in the Dominican Republic which has a capacity of 30 thousand tons per annum of nickel contained in ferro-nickel, while INCO- Guatemala permanently closed its 13 thousand tons mine and matte plant. In November 1981, the Marinduque Mining and Industrial Corporation, the major nickel producer in the Philippines shut down its operations with a capacity of 34 thousand tons per annum. (Price Prospects for Major Primary Commodities - Vol. IV World Bank 1982). MDF/W/21 Page 36

60. The other major producer is China. 10. Semi-manufactures of nickel 61. In many nickel consuming countries with refining plants part of the unwrought nickel is fabricated into semi-manufactures and more finished products for final use. Products concerned here fall under CCCN headings 75.02-75.06. CCCN 75.02 covers wrought bars, rods, angles, shapes and sections as well as nickel wire. CCCN 75.03 covers mainly wrought plates, sheets and strips, nickel foil, nickel powders and flakes of all types regardless of their intended use. Depending on their physical characteristics, powders and flakes are used in the unalloyed states in plates for nickel-cadmium batteries, in the manufacture of nickel salts, as binding agents for metal carbides, in the manufacture of nickel coinage blanks for the production of nickel alloys (e.g. alloy steels) and as catalysts. Tubes, and pipes and blanks thereof of nickel, as well as hollow bars, tubes and pipe fittings of nickel fail under CCCN 75.04, while electro-plating anodes of nickel fall under CCCN 75.05. Under CCCN 75.06 fall miscellaneous nickel products including nickel nails, tacks, nuts, bolts and screws, structures such as window frames, household and sanitary articles and parts thereof of nickel. Production statistics for these products are not available on a global scale, but the trade flows will be discussed-in the section of this study dealing with individual country trade analysis. 11. Consumption 62. Nickel is a metal essentially used in the production of stainless steel, alloy steels and non-ferrous alloys. (See Chart I on nickel consumption by first use). Its demand is a derived demand for the above products, especially steel whose production accounts for about 60 per cent of total nickel consumption. Chart IV shows the correlation between world crude steel production and world nickel consumption. Stainless steel production tends to be coincident with the durable consumer sector, while the production of non-ferrous alloys (as measured by nickel consumption) is more closely related to developments in the capital goods sector, thus making nickel responsive to market developments in both sectors. The overall consumption of nickel, its volume, rate of growth, intensity, and geographical distribution, could be considered to reflect closely the current stage of industrialization, the pace of industrial and technological development, and the sectors of the economy which are of predominant influence in metal consumption at any given period. As a strategic metal the consumption of nickel is also influenced by the state of international relations; during periods of military strife and high tension the demand for nickel has tended to rise.

1It has been postulated that the amount of nickel used per unit of GNP varies over the different phases of economic growth. Early stages of industrialization are normally accompanied by a sharp rise in nickel consumption per unit of GNP. This was probably the case during the late 1940's and in the 1950's when countries were trying to catch up on the US level of nickel consumption. In the more advanced phases - e.g. in the 1960's nickel consumption growth matched that of GNP. However in the more mature stages of development, e.g. in the seventies, the pattern of demand changes in favour of services using less metals in favour of goods with high value added and low metal content, such as computers and electronics. Thereon nickel consumption per unit of GNP starts to decline. MDF/W/21 Page 37

CHART IV CHANGES IN WORLD NICKEL CONSUMPTION AND CRUDE STEEL PRODUCTION, 1953-1983.

55 60 65 70 75 80 85

Source: Metals Analysis and Outlook - No. 22. Fourth Quarter 1984. MDF/W/21 Page 38.

63. The primary nickel consumption picture is further complicated by the stainless steel scrap cycle. As stainless steel production varies in response to the economic cycle the amount of home and prompt industrial scrap available varies with respect to the desired level of stainless steel production: as production rises scrap availability decreases, prices increase and primary nickel consumption goes up with the reverse occurring as production falls. 64. Table 9 gives information on global nickel consumption between 1960 and 1983, its volumes and geographical distribution while a diagramatic presentation of the evolution of global nickel consumption is given in Chart V. 65. Nickel consumption has in the past shown a marked cyclical tendency. Consumption of nickel almost doubled from 1948 to 1959. This apparent growth of approximately 9 per cent per annum was also maintained from 1959 to 1969 when nickel consumption again doubled from 249,200 metric tons in 1959 to 502,800 metric tons in 1969. These were, however, periods of exceptionally rapid.growth when the industrialized nations of Europe were catching up, from the World War II levels, on the US level of per capita metals consumption. Other factors which contributed to the high rate of growth in global nickel consumption during this period were the increase in the military spending occasioned by the Korean War, the "Cold War" and the Vietnam War, and the fast expansion of capital goods industries. The high rate of growth in nickel consumption over a fairly long period of time led producers into extrapolating this trend into the future, and new mining projects were developed in a number of countries in the late 1960's and the early 1970's. Nickel consumption grew at a fast rate from 502,800 metric tons in 1969 to 710,700 metric tons in 1974 after which the effect of the economic recession in the market economies which followed the first "oil-shock" began to be felt. From 1975 to 1978, the annual world consumption of nickel fell well below the 1974 level. Following the economic recovery in the market economies which began in 1978 there was a sharp rise in nickel consumption from 680,800 metric tons in 1978 to a historical peak of 748,000 metric tons in 1979. From then on the recession of 1980-1982 caused consumption to fall to 651,00 metric tons in 1982. Consumption increased by about 6 per cent in 1983 to 690,000metric tons primarily on the basis of a 40 per cent increase in stainless steel production in the US. In 1984, global consumption of nickel is estimated to have grown by about 10 per cent over the 1983 level and a further increase is projected for 1985 when the world economy is expected to reach the peak of its current cycle. Apart from the cyclical slowdown in economic activity in industrialized countries one of the fundamental reasons-given for the reduction in nickel consumption in recent years is the decline in steel consumption per unit of GNP in the major nickel

¹Scrap price increases also tend to draw greater amounts of obsolete scrap back into the system, limiting the run-up in scrap prices, and when production is curtailed, exacerbating this decline. ²Metal Bulletin Monthly - No. 166 October 1984, p. 11. Table 9 World Consumptionof Nickel(l), 1960-1983

in thousand metric tons as a percentege of world consumption 1960 1965 1970 1973 1975 1979 1980 1981 1982 1983 1960 1965 1970 1973 1975 1979 1980 1981 1982 1983 World 293 429 572 657 577 748 709 664 651 690 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Developingcountries 3 8 16 21 27 43 48 49 45 52 1.0 1.9 2.8 3.2 4.7 5.7 6.8 7.4 6.9 7.5

Argentina - - - 1 I I 1 - - 1 - - - 0.2 0.2 0.1 0.1 - - 0.1 Brazil - - - 5 4 8 il 7 5 8 - - - 0.8 0.7 1.1 1.6 1.1 0.8 1.2 India - - - 1 3 6 7 9 il 13 - - - 0.2 0.5 0.8 1.0 1.4 1.7 1.9 Korea, Rep.of(2) _ - - - - 1 3 4 2 2 - - 7 - - 0.1 0.4 0.6 0.3 0.3 Mexico _ _ _ 1 3 2 3 3 3 1 - - - 0.2 0.5 0.3 0.4 0.5 0.5 0.1 Romania* _ _ _ 3 5 6 6 6 5 5 - - - 0.5 0.9 0.8 0.8 0.9 0.8 0.7 Spain 1 3 5 5 9 9 7 8 8 - 0.2 0.5 0.8 0.9 1.2 1.3 1.1 1.2 1.2 Turkey ______I- - - - Yugoslavia_ 1 1 2 2 2 2 2* 2* - - 0.2 0.2 0.3 0.3 0.3 0.3 0.3*0.2 0.3*0.1 0ther(3) 3 7 12 4 4 8 6 il 8 il 1.0 1.6 2.1 0.6 0.7 1.1 0.8 1.7 1.2 1.6 Developed countries 216 311 426 496 388 522 480 435 420 450 73.7 72.5 74.5 75.5 67.2 69.8 67.7 65.5 64.5 65.2 Australia(incl. Oceania) 2 2 3* 5 2 5 5 4 4 4 0.7 0.5 0.5* 0.8 0.3 0.7 0.7 0.6 0.6 0.6 Austria 3 3 6 5 4 5 5 4 4 4 1.0 0.7 1.0 0.8 0.7 0.7 0.7 0.6 0.6 0.6 Canada 4 8 12 1 1 11 8 10 9 7 8* 1.4 1.9 2.1 1.7 1.9 1.1 1.4 1.4 1.1 1. 2* EEC: (4) 80 100 135 145 125 184 161 143 142 147 27.3 23.3 23.6 22.1 21.7 24.6 22.7 21.5 21.8 21.3 Germany,F.R. 23 31 41 55 43 76 68 62 58 63 7.8 7.2 7.2 8.4 7.5 10.2 9.6 9.3 8.9 9.1 Belgium-Luxembourg 2 1 2 4 4 5 4 4 4 5 0.7 0.2 0.3 0.6 0.7 0.7 0.6 0.6 0.6 0.7 France 19 21 36 30 32 39 38 34 32 32 6.5 4.9 6.3 4.6 5.5 5.2 5.4 5.1 4.9 4.6 United Kingdom 28 37 35 31 27 35 23 22 22 22 9.6 8.6 6.1 4.7 4.7 4.7 3.2 3.3 3.4 3.2 Italy 7 9 20 23 17 27 27 20 24 22 2.4 2.1 3.5 3.5 2.9 3.6 3.8 3.0 3.7 3.2 Netherlands 1 1 1 1 1 1 1. 1 1 1 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.2 0.2 0.1 Finland 1 - - - - 7 8 7 9 10 0.3 - - - - 0.9 1.1 1.4 1.4 Japan 18 27 99 114 83 132 122 105 107 115 6.1 6.3 17.3 17.4 14.4 17.6 17.'1.' 15.8 16.4 16.7 Norway - 1 1 I 1 ------0.2 0.2 0.2 0.2 - - - - - South Africa - - - 5 5 5 6 6 6 6 - - - 0.8 0.9 0.7 0.3 0.9 0.9 0.9 Sweden 9 13 23 27 22 22 20 16 15 16 3.1 3.0 4.0 4.1 3.8 2.9 2.8 2.4 2.3 2.3 Switzerland I 1 2 I 2 1 1 1 I 1 0.3 0.2 0.3 0.2 0.3 0.1 0.1 0.2 0.2 0.1 United States(5) 98 156 145 182 133 153 142 140 125 139 33.4 36.4 25.3 27.7 23.1 20.5 20.0 21.1 19.2 20.1 Centrally-planned economes, of which: 74 110 130 140 162 183 181 180 186 188 25.3 25.6 22.7 21.3 28.1 24.5 25.5 27.1 28.6 27.2 Bulgaria* - - - - 1 1 1 1 2 2 - - - - 0.2 0.1 0.1 0.2 0.3 0.3 China P.R.* - - - 18 18 19 18 19 19 19 - - - 2.7 3.1 2.5 2.5 2.9 2.9 2.8 Czechoslovakia - - - 7 9 10 10 10 8 8 - - - 1.1 1.6 1.3 1.4 1.5 1.2 1.2 Germany DR.* - - - 8 9 il 10 10 10 9 - - - 1.2 1.6 1.5 1.4 1.5 1.5 1.3 Hungary- - - I 2 2 2 2 3 3 - - - 0.2 0.3 0.3 0.3 0.3 0.5 0.4 Poland 5 7 9 8 7 6 7 - _ _ 0.8 1.2 1.2 1.1 1.1 0.9 1.0 74 | 110 130 100 115 1 30 I13 14$025.3 25.6 1 22,7 15:2 19.9 17:4 18:1 212 201 (1)Includingnickel content in ferro-nickel and nickel oxide sinter; since 1973 excluding of nickel chemicals. (2) Figures for 1973 included in other counties consumption (3)Including Taiwan. developing consumtion. (4)For comparative purposes total figures for the EEC include ten member states for the whole period. Page39 for 1965 and 1970 provided by the US Bureau of Mines while those indicated by International Nickel Co. were 167.8 and 149.7 thousand metric tons respectively. From 1973 to 1978 reported consumption is indicated; begining 1979 apparent consumption. MDF/W/21 *Figures based an estimates. -. - nilor less than 500 metric tons or 0.1 per cent of world consumption. ru Source: Metal Statistics 1960-1970 and 1973-1983, Metallgesellschaft AG. CHART V S m WORLD NICKEL CONSUMPTION ~~~~~~~~~~~~~O N 1950-1983 800

700

600

500

400

200 _ 1

1950 1960 1970 1980 Source: Supplied by the Department of Energy, Mines and Resources, Canada. MDF/W/21 Page 41 consuming nations which are entering the advanced stages of economic development where metal consumption falls as a result of the shift in demand towards services and other goods which are not metal intensive.¹ 66. The global picture portrayed above hides wide regional differences in consumption levels and their evolution. In 1960, 73.7 per cent of total world consumption of primary nickel was accounted for by the developed market economy countries, 25.3 per cent by the centrally-planned countries and more specifically the USSR, and the remaining 1 per cent by the developing countries. The share of the developing countries has since then grown steadily at differing annual rates to reach 7.5 per cent in 1983 and a volume of 52,000 metric tons compared with 3,000 metric tons in 1960. Developing countries with the largest share of consumption are India, Brazil, Spain, Romania, Republic of Korea, Mexico, Yugoslavia and Argentina. As industrialization gathers pace in developing countries and incomes rise their consumption of nickel is bound to continue rising. Table 10 which shows the relative growth rates of nickel consumption in the different economic regions indicate that developing countries have the highest rate of growth in nickel consumption. 67. The share of the centrally-planned economies in the consumption of nickel has remained fairly stable since 1960 increasing only slightly in a fluctuating manner from 25.3 per cent to 27.2 per cent in 1983. In volume terms, however, consumption has increased considerably from 74,000 metric tons in 1960 to 288,000 metric tons in 1983. The USSR is not only the largest consumer by far among this group of countries, but it has also become the largest consuming country in the world to the tune of 140,000 metric tons, in 1983 representing 20.3 per cent of total world consumption. At 19,000 metric tons, the consumption of the People's Republic of China has remained practically the same since 1973. In 1983, it represented 2.8 per cent of world consumption. The other major consumers among the centrally-planned economies are Czechoslovakia, Germany, D.R., and Poland. 68. The consumption of nickel by the developed market economy countries more than doubled between 1960 and 1983, rising from 216,000 metric tons to 450,000 metric tons. This overall picture, however, hides a market evolution closely related to the level of economic activity in the developed countries. After a very fast growth which reached a first peak in 1974 consumption dropped sharply during the following four years of economic recession. Demand started to pick up in 1978 and quickly moved to an all-time peak in 1979, but started a steep decline in the 1980-82 economic recession. The 1983 consumption of 450,000 metric tons which represents an increase over the previous year's level of 420,000 metric tons is still below the 1973 consumption level. Between 1960 and 1983, the developed market economy countries lost eight percentage points share of

¹By the late 1960's, there was beginning to be a flattening of the demand for nickel products. The economies of North America Europe and Japan were reaching something of a saturation point in consumption of steel products, the largest single outlet for nickel production. There was, and still is a long-term slow down in the so-called "mature industries" such as steel and auto, in North America and Western Europe (Raw Materials Report 1983 vol. 2. No. 2.). ²Nickel has a high income elasticity of demand. MDF/W/21 Page 42

Table 10

Relative growth rates of nickel consumption until 1990

Consumption grovth Share of world nickel consumption 1976-1990 1966 1976 1980 1990 (percentage) Developed market economies 74.2 70.8 71.2 70.8 3.8 Western Europe 27.7 28.5 27.4 27.3 3.5 Japan 7.8 17.3 17.9 19.3 14.6 United States of America, Canada, Australia, South Africa 38.7 25.0 25.9 24.2 3.7 Centrally planned economies 224.6 26.1 25.0 24.2 3.3 Developing countries 1.2 3.1 3.8 5.0 7.4 Brazil 0.2 0.6 0.7 1.4 10.1 Mexico 0.0 o.6 0.9 0.9 6.8 Developing countries of Asia 0.3 1.0 1.2 1.4 6.5 World 100 100 100 100 4.0

Source: Bundesanstalt für Geowissenschaften und Rohstoffeand Deutsches Institut für Wirtschaftsforschung, Untersuchungen über Angebot und Nachfrage mineralischer Rohstoffe - X (Nickel ), (Stuttgart, E. Schweizer Bart'sche Verlagsbuchhandlung, 1978).

Taken from "The Nickel Industry and the developing countries - UN New York 1980 MDF/W/21 Page 43

the total world consumption mostly to the developing countries and to a lesser extent to the centrally-planned economies. The US is the largest consumer among the developed market economies, with a volume of consumption which has grown from 98,000 metric tons in 1960 to 139,000 metric tons in 1983 after reaching a peak of 194,500 metric tons in 1974. Its share of the world market has, however, fallen considerably from around 33 per cent in 1960 to around 19.2 per cent in 1982. When it fell for the first time behind the USSR in 1983 its share was around 20 per cent.. The share of the EEC has fallen from 27.3 per cent in 1960 to 21.2 per cent in 1983 with the German Federal Republic, France, United Kingdom and Italy as the leading consumers. Consumption in the EEC grew from 80,000 tons in 1960 to 184,000 tons in 1979. It then declined to 142,000 tons in 1982 and rose somewhat to 147,000 tons in 1983. Japan which is the third largest nickel consuming country in the world has had the fastest growth in consumption outside the developing world since 1960. From a level of 18,000 metric tons in 1960 consumption in Japan had grown to 115,000 metric tons in 1983 after peaking at 132,000 metric tons in 1979. This represented a market share increasing from 6.1 per cent in 1960 to 16.7 per cent in 1983, and reflected the rapid advancement in nickel application technology in this country. 12. Prices and Stocks 69. Table 11 provides information on nickel prices in current and constant US dollars during the period 1950 to 1983. The price series are based on INCO producers contract prices for electrolytic cathodes. Until 1965 these prices included US tariffs. Constant prices have been calculated by using the industrial countries' unit value (c.i.f.) index of manufactured exports to developing countries. Chart VI provides the same information on price trends in a graphic form. 70. One of the salient features of the nickel industry during the past few decades has been the relative price stability which has prevailed especially between 1950 and 1965 in spite of a market situation characterized by periods of shortages and overproduction. This, as has been explained earlier in this paper, is the result of a deliberate policy pursued by the major producers especially INCO eventually at the expense of a decline in their share of the market. During periods of shortages they have preferred to draw on stocks and ration supplies rather than allow prices to rise in response to market forces. Similarly they responded to any excess supply situation by cutting back production and or by building up stocks. ¹ This policy vas most effective in the 1950s and 1960 when INCO and the other major producers largely dominated production and trade and when demand was generally strong. Another feature of this policy of stabilizing prices was that producer prices have for most of the period been much lover than the free market prices.

Historically nickel, like most other metals, has experienced wide cycles in inventories in response to demand cycles. The reasons given for this behaviour include an inability to forecast the timing and severity of market downturns accurately, a desire to utilize capacity at economic levels, and such factors as market share expectations and the aggressive participation of eastern world producers in western markets. When a market also suffers from chronic excess capacity as nickel has since the seventies, the inventory cycle can be amplified greatly. Table Il Nickel(US$/MetricPrices, 1950-1984Ton) Canadian¹ LMECash Setlement ² Year Current $ $/lb Constant S³ Constant$/lb $³ currentCurrent S4 $/lb Constant1982 $³ $/lb 1950 988 0.45 4.296 1.95 1951 1.191 0.54 4.363 1.98 1952 1,246 0.56 4.450 2.02 1953 1.321 0.60 4,929 2.24 8954 1,334 0.61 5.072 2.30 1955 1,422 0.65 5,306 2.41 1956 1,437 0.65 5.245 2.38 1957 1,631 0.74 5.703 2.59 1958 1.631 0.14 5.401 2.45 1959 1.631 0.74 5,683 2.58 1960 1,631 0.74 5.548 2.52 1961 1.711 0.78 5.800 2.63 1962 1,761 0.80 6,031 2.14 1963 1.742 0.79 5.925 2.69 1964 1,742 0.79 5,807 2.63 1965 1.735 0.79 5.764 2.61 1966 1.139 0.19 5,4SI 2.47 1961 1,936 0.88 5.975 2.71 1968 2,075 0.94 6,848 3.11 1969 2.363 1.07 1.748 3.51 1970 2,846 1.29 8,420 3.82 1971 2,932 1.33 8,011 3.63 1972 3.080 1.40 1.681 3.48 0913 3.313 1.53 7,042 3:19 1974 3,825 1.74 6,364 2.89 1915 4.570 2.07 6.701 3.04 1976 4,973 2.26 7,155 3.25 1977 5,203 2.36 6,910 3.13 1978 4,609 2.09 5,190 2.35 1979 5,986 2.72 .6,040 2.74 1980 7,528 3.41 7,016 3.18 6,536 2.96 6,091 2.76 1981 7.500 3.43 7.405 3.36 5,985 2.71 5,856 2.66 1982 7,055 3.20 1,055 3.20 4,816 2.18 4,816 2.18 1983 7,055 3.20 1.055 . 3.20 4,853 2.20 5.071 2.30 1984(Jan.-June 7,055 3.20 7.458 3.38 4,769 2.16 5.041 2.29

¹Electrolytic cathodes, contact price. f.o.b. shipping point, US duty included. ²Refined metal, melting grade. LME contract opened for trading July 1979. ³The deflator used is the industrial countries' unit value (c.i.f.) index of manufactured exporte to developing countries. 4The sterling price quotations have been converted to US dollars at the period average rate.

Sources: Commodity Trade and Price Trends 1983-84. IBRD/The World Bank World Metal Statistics Bulletin, World Bureau of Metal Statistics IMF International Financial Statistics, October 1984 MDF/W/21 Page 45

CHART VI Canadian Nickel Prices 1950-1983 (US$/metric ton)

10000

z o 1-- ci p- w

in m

Source: Commodity Trade and Price Trends 1983-1984 IBRD/The World Bank MDF/W/21 Page 46

71. On the basis of 1982 constant dollars nickel prices rose from US$1.95 per lb. in 1950 to US$3.20 per lb in 1982 a rise of 64 per cent compared with the six-fold rise in current prices, and there vas a rise of 39 per cent in 1982 constant prices between 1950 and 1967. The first period of prices upheaval was 1967-1972 when producer prices increased sharply. This has been imputed to three factors. The prolonged strike in Canada in 1967-68 and the resultant shortages of supplies, the market rise in production cost which took place at that time and the rising level of consumption. 72. The result of the fast rise in prices between 1967 and 1972 and the technological breakthrough in laterite ore processing in the 1960s vas a surge in the development of and output from laterites which are significantly more expensive then sulfide ores. Consequently, although production increased considerably between 1965 and 1975, prices were kept high te meet rising production costs. The world economy entered into a recession in 1974-1975, with the result that consumption declined considerably in 1975. During 1975 and 1976 world production of nickel is estimated to have exceeded consumption by 221,000 tons, as the expected economic recovery failed to materialize. With producers holding large stocks of nickel and market demand weak the stage was set in 1977 for a considerable lowering of the official producer price and a reduction in capacity utilization by the major producers. This did not prevent the producer price from becoming the target of discounting by some producers, sometimes by as much a 5 to 10 per cent below the official posted price. Faced with increasing inventories, a decreasing market share and heavy discounting by other competitors, INCO, in the course of 1977 rescinded a price increase implemented in October 1976 and stopped publishing its prices. 73. In early 1978 nickel stocks amounted to about eight months' supplies compared with the normal level of two to three months and prices stayed at pre 1977 levels. In the course of 1978 there was improvement on the nickel market as consumption, following the recovery in the world economy, rose by 9 per cent at the same time as production declined by 23 per cent from the previous years' level. Producer stocks began to fall so sharply that by mid-1979 they amounted to four to five months consumption, still about double the normal inventory requirements. Similar reductions in consumers' stocks were observed as high interest rates outweighed the benefits of holding large stocks. With the rapid depletion of producer stocks in early 1979 caused by high demand, curtailed production, and the continuing work stoppage at nickel mines in Canada, INCO reinstated posted prices in February and by the end of the year the producer price was at a level considerably higher than that of 1978. Table 12 shows the evolution of world stocks of unwrought nickel in the markets economy countries between the years 1976 and 1984. This Table also shows the current United States GSA strategic stockpile of nickel to amount to 29,000 metric tons compared to an objective of 181,000 tons, virtually unchanged since 1976.

1Institute for World Economy - University of Kiel, - Working Paper No. 160 -(1982). Table 12

World Stocks of Unwrought Nickel , 1976-1984

(in thousand metric tones) 1976 1977 1978 1979 1980 1981 1982 1983 198>4 Commercial stocks 3 3 3 Producers 130 225 145 65 108 111 85 64 7 Consumers 44 23 28 31 20 27 17 26 13

Merchants 5 7 3 3 3 2 8 7 n.a. LME4 - - 6 4 2 7 28 20 Total 179 254 176 106 136 142 117 124 n.a. Non-Commercial Stocks Strategic Stockpile:

USA n.a. 34 32 3 0 3 29 29 29 29 (current stockpile objective) (185) (185) (185) (185) (181) (181) (181) (181) n.a.

¹Stocks of refined nickel plus nickel contained in ferro-nickel, nickel oxide and fonte, excluding nickel in scrap form.

Latest available information contains stocks held and by: Japanese Brazilian producers for months of July and April. - United States consumer for June. - LME and United States Stockpile for August. 3Nickel metal stocks held by Japanese smelters are included. 4Opened for trading July 1979. u 5Nickel in stockpile was sold to the United States Bureau of Mint, under long-term, contract.

Source: - World Metal Statistics Bulletin, World Bureau of Metal Statistics. - Office of Preparedness, Ceneral Services Administration, Non-Ferrous Metal Data 1976-1983, American Bureau of Metal Statistics, INC, New York. MDF/W/21 Page 48

74. The upturn in the nickel industry however did not last as the world economy entered a recession in late 1980 which lasted until 1982. Reflecting a 10 per cent decline in world nickel consumption in 1980 with the ensuing rise in inventories, INCO effected in November 1980 a 6 per cent discount on its prices which had been listed at US$3.42 per lb. Meanwhile, nickel trading in the London Metal Exchange which had been introduced in 1979 was beginning to influence free market prices which were gaining in importance. Although posted prices in the second half of 1981 averaged US$3.41 per lb, many producers were offering nickel at prices as low as US$2.80 per lb including up to 150 - day credit terms. By the end of November 1981, INCO and the other major producers had reduced their prices to US$3.20 per lb together with 6 per cent discount for nickel delivered up to February 1982. The fall in prices continued in 1982 and reached dramatic proportions in tce third quarter when free market prices reached as low at US$1.56 per lb. INCO producer price quotations still maintained at US$3.20 per lb were by now only of nominal significance. 75. However by the end of the year the recession had begun to ease and the recovery continued in 1983 resulting in greatly increasedd stainless steel and nickel consumption. Although mine production picked up in 1983 this could not prevent a supply devicit and there was a substantial producer destocking, bringing inventories to their lowest level for a long time. However, the coming on-stream of new projects such as Cerro Matoso in Colombia, Codemin in Brazil and Feni in Yugoslavia and the reopening of mines by INCO, Falconbridge and Marinduque helped to maintain the market in a continuous state of over-supply. The free market price averaged US$2.13 per lb throughout 1983, and realized producer quotations were only slightly higher with INCO prices averaging US$2.25 per lb and Falconbridge averaging US$2.16 per lb. With world economic recovery well established in 1984 consumption of nickel in the developed market-economy countries is estimated to have been 10 per cent higher than the 1983 level of 512,000 tonnes, thus surpassing the 1979 record high of 522,000 tonnes. The rise in prices was however modest with free market prices in 1984 averaging US$2.16 per lb. This has been imputed to a number of factors, among which was the fact that nickel production rose substantially and whatever supply deficit remaining was made up by removal from LME stocks.

SECTION III: International Trade

76. Primary nickel is heavily traded internationally by virtue of its importance as a major industrial raw material. Nickel products traded internationally can be classified into four main groups; ores and concentrates; intermediate products such as matte, and speiss; refined products such as electrolytic cathodes, pellets, briquets, rondels, nickel 89 as well as nickel oxide sinter and ferro-nickel; and semi-manufactured refined products. Old nickel scrap is also traded internationally and often classified under unwrought nickel.

All the main producers responded to the collapse in prices b production cut-backs, production suspensions and mine shutdowns. INCO abandoned the Eximbal project in Guatemala indefinitely. ²It must be pointed out that due to the rise in the value of the dollar, these prices, low as they appear, compared favourably with pre-recession prices. Moreover, the major in developed count-ies have managed to cut down costs and have againproducersbecome marginally profitable even at the prevailing low prices. MDF/W/21 Page 49

77. This section is devoted to an analysis of export and import trade in the first three groups of products mentioned above. The analysis is however, greatly handicapped by the absence of well established and classified statistical data in certain countries. There is also an absence of statistical uniformity in the product classification, and in some major producing countries quantum trade figures are not provided in available statistical sources. The accompanying export and import trade Tables must only be considered as indicative since aggregation has been done with some reservation. The pattern of trade in all three groups of products is determined by two main factors; the normal trade flows between the primary producers and the main consuming countries, and the corporate structure of the nickel industry. Thus, semi-processed nickel is either shipped between the mining and processing facilities of the same company but in different countries or, between independent companies in different countries. Matte from Canada is exported to the United Kingdom by INCO and to Norway by Falconbridge for refining and, in the same way, SLN exports matte from New Caledonia for refining in France. On the other hand, normal commercial transactions take place between producers in Canada, New Caledonia, Indonesia, Australia, Philippines, Botswana etc., and refinery producers in the United States, Japan and Western Europe. Cuba exports a large part of its production to the centrally planned economies of Eastern Europe. 78. The centrally-planned economies are by and large self-sufficient in nickel and have for a number of years been exporting significant quantities to the market economy countries, with the USSR as the main exporter. Detailed statistics from these countries indicate, as Table 13 shows, that exports from these sources to the market economies estimated from importing sources reached about 327000 metric tones in 1980 but declined slightly to about 31,000 metric tonnes in 1983. 79. Available statistics indicate that exports of unwrought nickel rose steadily in the 1960s and 1970s. From a level of 301,000 metric tonnes in 1960 exports from the market economy countries reached 529,000 tonnes in 1970. Since then exports have tended to fluctuate considerably following the overall trends in the world economy. They reached about 617,000 tonnes in 1974 but fluctuated downwards to around 512,00 tonnes in 1980. There was a sharp fall in exports during the 1980-82 economic recession so that by 1982 they were standing at an estimated 335,000 tonnes. Despite the economic recovery in 1983 exports hardly increased over those of the preceding year. 80. The share of developing countries in total nickel export has increased substantially during the last twenty years. In 1960 this share was estimated at 17 per cent, by 1970 it has increased to 35 per cent and in 1980 it was estimated at 40 per cent.² This share is estimated to have fallen to about 37.5 per cent in 1983 but is expected to recover eventually to the pre-recession level.

Nickel Handbook - World Bank 1981 ²Price Prospects for Major Primary Commodities. Volume IV - Metals and Minerals - page 53. (World Bank - July 1982) Table 13

Exports of Nickel - llitwrought l : in Mn ID -fl Products Ores and Concentrates Hatte, apeissand other intermediate ('000 metric tons of metal content) Ferro-nickel, nickel oxide sinter, X: V %.. 1a a. products unwrought nickel and nickel alloys CD 1\j Main 19)5 1 )110 2 1 Exporters 1970 1912 1 19101 )911 1915 1918^ 19H1 1 1982 1983 1910 1972 1915 1978 1980 1951 1982 1 l98i

World Total 96.0 ;1.4 64.1 3.8 41.9 53.9 178.4 1 8H. 7 I9 176.6 184.1 145.0 141.6 269.1 j6.S0 339.3 379.9 396.1 395.5 351.3

_. _ 41.0 Developing unties¹a 82.1 61.3 fil.. 53.6 35.6 11.41 IR.21 L.2.L.1 Él.01 ..1j 66.9 68.5 62.3 92.6 jL14-4 IWII 129.2 11S.7 90.1 110.0

Brazil 2.0 2.0 2.0 0.1 Botswana² 117,1 n.9 nà 6.4 16.1 15.4 18.4 17.1 18.2 Cuba 17.8 17.1 16.6 16.2 16.1 18.( 16.2 16.2 12.3 12.6 19.5 19.4 19. 5 17.2 19.0n Dominican Rep4 16.6 2S.2 20.0 19.6 5.6 20.9 Indonesia5 6.3 16.7 12.8 17.7 16.8 14.4 10.1 12.2 30.5 32.1 25.0 28 16.2 12.3 12.6 19.5 19.4 19.5 17.2 19 Oe

New Caledonta 15.2 40.8 44.J 28.0 36 8 29.8 27.3 20.3 15.6 20.6 19.4 16.5 16.4 17.6 7.9 3.7 27.9 39.4 42.7 25.2 32.1 27.3 26 S 22.9 Ph ilippines 1.2 5.8 0.5 7.5 9.6 7.0 S.) 5.0 6.3 12.0 24.* 18.1 Il.} 12.1 Z imbabwe6 e001 13.0e 16.5 14.4 I11.7 12.0 16.0

DeveIoped Countries 10.1 ,.8 0.6 0 .4 18.3 145.0 153.5 115.6 105.1 18.1 13.3 108.1 206.8 11-3_-'i 1 1-'(_-'D 1 LI.-S.3 1 1 2S3 - 'l _221.5 216.6 _ 1 9 4.5< 0.1' 1,8.0 Australia7 18.0' 10.0' 12.0 ,47.1 517 0, 47.3 29.51 1.0 16.5 32.9 317.3 I] 42.5 45.9 41.8 127.5 114.2 '822.9 66.9 42.6 53.5 21.0 40.1 139.0 109.7 90.1 105.7 105.1I 94.3 76.8 78.1

EEC9 7.5 4.2 0. 5 L.6 4.1 4.1 2.01 3.21 12.1 18.6 14.3 10.2. 8.4 14.0 8.1 11.3 4.4*' 6.1te 17.80a 14.3*é 9 3j0 15.San 4*' 5.2*' Finland 1.4 2.1 1.8 0.3 3.0 4.7 5.8 5.9 11.1 11.1 9.t 11.3 Japan 0.1, 1.5 3.0 1.3 1.3 0.3 0.3 6.0e' 1IMe 7.6il 6.06 0* 1.2*' 1.5* Horway 0.5 0.4 0.4 0.5 0.6 0.2 0.1 0.3 40.2 29.s 40.. 31.2 36.9 29.2 30.0 United States 5.5 1.9 6.1 10.6 12.*6 IS.1 31.3 20.1

South Africa10 3.5 10.2 10.7e 14.2e 15.0e 13.20 13.6e

21.S Centrally anneaiIdountalrs11aa' 14.0 12.4 26* 31.0 30.1

German, D.A. 0.1 0.2 0.2 0.2 0.1 0.6 Hungary 0.1 0.3 0.2 0.5 0.1 USSR 13.6 21.4 31.0 2S.6 30.8 10.1

*Ferro-nickel "Estimates

¹Colombia started production in 1982 and the annual ferro-nickel production is 7In the absence of details of Australian export trade, figures given here are for estimated at 22.5 thousand. Export in 1983 was 12.3 thousand tons of nickel content. Intermediate products are estimates and those for refined products reflect smelter ²Exports are in the form of copper-nickel xuitte shown here in nickel content. production. ³Exports of Cuba are mainly matte and nickel oxide sinter. 8Products of intermediate metallurgy exported by Canada are matte and nickel oxide. 4Exports of Dominican Republic are in the form of ferro-nickels. Other exports are refined unwrought nickel i.e. anodes, cathodes. ingots, rode etc. Expo rts of Indonesia are ores, matte and ferro-nickel. 9For purposes of comparison figures are given for EEC of ten. Intra EEC trade is also excluded. 6Exports of Zimbabwe are all in refined nickel products. 10South Africa exported refined nickel product mostly briquettes. 11The figures in this table refer only to extra-CHEAtrade. Statistics for the years preceeding 1975 are not available. Sources: National Statistics. 1II1 Commodity Trade Statistics - varioustrades.a IiH Yearbook of International Trade Statistics- various issues. Mining Annual Review - variousissues WorldMetaI Statistics - variousissues Metal Bulletin Handbook - variousissues Minerals Yearbook -v.aious issues.,sa ., MDF/W/21 Page 51

81. In the sub-sections which follow an attempt is made to analyse trade flows in the different categories of nickel products. 13. Ores and concentrates 82. Raw nickel ores are exported by only three major producers, New Caledonia, Indonesia and the Philippines, in order of importance. Virtually all exports go to Japan, which is the only major importer of nickel ores. Exports of ores have, however, tended to decline in recent years. Estimated at a gross weight of about 4.7 million tonnes in 1970, imports by Japan have declined to about 2.3 million tonnes in 1983. Exports of concentrates are more diffused and as in the case of intermediate products such as matte and nickel oxides, intra-company flows play a major role. Thus, matte from SLN operations in New Caledonia are shipped for smelting and refining in France while INCO and Falconbridge in Canada export nickel oxide and matte to refineries i the United Kingdom and Norway respectively. Australia is the only other exporter of concentrates in significant quantities. The amount of trade in concentrates is not easy to estimate since trade statistics often group ores and concentrates together or ores, concentrates and matte together. Their share of world trade in nickel products is however in decline as producers increasingly prefer to export products il a more processed form. 14. Intermediate products 83. As implied in this study intermediate products of nickel comprise products other than ores and concentrates which are subjected to further processing before the refining stage and they include matte, speiss and nickel oxide. In 1983 they accounted for about 28.7 per cent of total exports of nickel products. As the export Table shows developed countries account for most of the intermediate products which are internationally traded, with Canada as the largest exporter. The Canadian exports of intermediate products which are mainly in the form of matte and nickel oxide have declined from 127,500 metric tonnes in 1970 to about 40,000 tonnes in 1983. Estimated exports of Australia have, on the other hand, increased from about 25,500 metric tonnes in 1970 to about 42,000 tonnes in 1983. Until the recession of 1982 exports of matte by New Caledonia averaged between 15,000 and 20,000 metric tonnes destined for refining in France and Japan. Other major exporter of matte among the developing countries are Botswana and Indonesia. Until recently most of the export of nickel-copper matte from Botswana vent to AMAX refining plants in the United States and some to Zimbabwe. Matte exports of Indonesia go mainly to Japan. After the production cut backs resulting from the recent recession exports of matte from New Caledonia which reached a low point of 3,700 tons in 1983 are estimated to have gone up in 1984. Some oxide is also exported by Cuba to Japan, the EEC and India, etc. 15. Refined nickel products 84. Products being considered in this study as refined products comprise the normal Class I products such as electrolytic cathodes, pellet, briquets, rondels and nickel 98 as vell as nickel alloys. Nickel oxide singers and ferro-nickel are also considered as refined products. Refined products accounted for about 65 per cent of total exports of nickel

¹Exports of matte and ferro-nickel in 1984 are estimated to have reached 36,000 metric tonnes of nickel content, compared with 26,648 tonnes in 1983 and 34,753 tonnes in 1982. MDF/W/21 Page 52 products in 1983. The export table shows that in 1983 five developing countries other than Cuba were substantial exporters of refined nickel products. They were the Dominican Republic, Colombia, Indonesia, New Caledonia, which export mostly ferro-nickel, the Philippines, which exports briquettes and other products and Cuba and Zimbabwe, which export mostly refined products. In contrast, New Caledonia vas practically the only developing territory exporting ferro-nickel in 1970. Developing countries on the whole accounted for about 29 per cent of total exports of refined nickel products by the market economy countries in 1983 and this share is expected to grow in the future as production from laterite deposits gain an increasing share of the market in nickel products. Canada is the largest exporter of refined nickel products in the world accounting in 1983 for about 24 per cent of the total exports of the market economy countries. This, however, shows a considerable fall from its share of about 61 per cent in 1970. Other major exporters are Norway, United States, Japan, Australia, EEC and Finland. 85. The larges importer of refined nickel products is the United States, followed by the EEC and Japan, which together with other industralized countries of Western Europe, accounted in 1983 for over 90 per cent of total imports of the market economy countries. Import trade in nickel products is analysed in Table 14. 16. Direction of Trade 85. Tables 15 and 16 show the direction of import and export trade in nickel products. As has been indicated earlier, trade flows in nickel products follow a pattern typical of many other metals. Ores, concentrates and semi-processed products are often shipped from production centres in developing and developed countries mostly to developed countries for smelting, refining and fabrication. Exports of refined and sometimes semi-refined products are shipped, in most cases, from producing to consuming developed and developing countries. In view of the rather concentrated corporate structure of the world nickel industry, intra-company operations also influence the direction of trade considerably (the overall number of exporters of nickel products is rather small). Table 16 indicates that among the developing countries the principal exporters of nickel products are New Caledonia, Cuba, Indonesia, Philippines, Dominican Republic, Zimbabwe, Colombia, Botswana and Brazil, while the principal developed country exporters are Canada, Norway, Australia, EEC, United States, Finland and Japan. This Table, like many other statistical tables on nickel, is deficient in a number of ways. Many national statistics differ in their product classifications, figures are sometimes given in gross weight instead of metal content or in value instead of quantities, and some countries fail to list export markets. 87. New Caledonia is by far the largest exporter among the developing countries. It exports ores to Japan, nickel matte to the EEC and more specifically to France and ferro-nickel to the EEC, Japan, Spain, Sweden and the United States. Indonesia exports substantial quantities of ore to Japan, which also receives most of its export of matte. The rest of its matte export goes mainly to the EEC; its ferro-nickel exports go mainly to the EEC, Japan, Sweden and the United States. Dominican Republic exports all its nickel production in the form of ferro-nickel to the EEC, Canada, Japan, Spain, Sweden and the United States. The Philippines exports some nickel ore and sulfide concentrates to Japan and the rest of its production in the form of ferro-nickel and refined products goes mainly to the EEC, Table 14 Imports of Nickel (Unwrought)

(000'metric times; metal content) Ores and concentrates Matte, speiss and other intermediate products Ferro-nickel, nickel oxide sinter, of nickel metallurgy unwrought nickel and nickel alloys

Importers 1910 1972 1915 1978 1980 1981 1982 1903 1910 1972 1975 1978 1980 1981 1982 1963 1910 1912 1975 1978 1980 1961 1982 1983

World Total 153.1 104.7 100.6 105.8 120.8 111.4 94.2 83.8 166.3 150.4 146.2 159.1 209.4 185.7 138.6 147.1 299.9 314.5 299.7 311.1 288.4 293.3 257.5 308.5 DevelopingCountries _ _ _ 2.6 _ 0.1 n.a. n.a. 0.4 0.3 0.2 0.7 3.1 2.4 0.5 0.4 4.4 3.5 3.3 14.1 17.9 17.9 15.2 19.6

Argentia _ _ _ _ n.a ...... n.a. _ 0.6 0.8 0.4 0.4 n.n. Brazil _ _ _ _ . . . . .0.3 2.7 - _ _ _ 3.0 S.7 4.9 1.7 0.2 India _ _ _ - 0.1 n.a. n.a. _ _ _ _ 0.2 1.9 n.a n.a. 2.9 2.4 3.1 3.6 3.2 6.9 L.lP 7.Ot Spain - - - 2.6 _ n.a 0.4 0.3 0.2 0.3 0.1 0.4 0.3 0.3 - - - 6.7 6.3 3.6 5.0 11.0 Yugoslavia - - - - _ _ _ _ _ 0.1 0.1 0.1 0.2 0.1 1.5 1.1 0.2 0.2 1.9 2.1 1.1 1.4

Developed Countries 153.1 104.1 100.6 103.2 120.8 111.3 94.2 83.8 165.9 50.1 146.0 158.4 206.3 183.3 138.1 146.7 295.5 311.0 294.9 297.0 267.1 273.6 240.1 286.5

Austria ------_ 0.8 0.8 0.7 1.0 1.0 0.6 0.6 0.5 2.5 2.4 1.9 2.4 2.4 2.6 2.1 5.9 Australia - - - - 0.1 - - _ 0.8 0.8 0.4 l.2 2.0 - - 0.3 2.2 1.1 1.4 3.2 1.7 1.5 1.9 1.4 Finland 0.3 0.7 0.3 0.4 0.3 0.5 0.3 0.3 - _ _ 1.8 7.5 6.3 7.8 9.9 0.2 0.1 0.3 2.3 4.3 2.4 2.9 5.0 EEC¹ - - - - 0.1 0.2 0.0 64.2 59.9 56.9 5,0.6 55.3 56.8 34.2 38.3 100.9 87.1 69.4 69.1 88.6 75.5 81.6 77.5 38. 46. 69.5*e 33. 4. 25.60 27.5 44.(y Canada² 26.9 22.1 17.9 3l.9 26.1 23.8 22.3 29.3 - - ______11.2 16.8 11.9 4.0 5.2 2.9 3.6 3.3 Norway ------_ 54. 50.9 44.1 35.9 57.7 44.5 33.2 33.4 - - - - 0.1 0.2 0.1 0.3 Sweden - - - - - 0.2 - _ 2. 1.5 2.0 5.4 4.4 3.1 2.6 4.0 18.7 15.4 13.9 8.3 10.8 8.0 10.9 9.5 Japan3 125.9 81.9 82.4 70.9 91.5 80.9 70.1 54.2 14. 10.1 21.4 24.0 42.8 30.4 33.4 30.7 7.6 12.3 8.6 10.9 15.6 17.4 19.9 21.01 1.6e 2.3 3,4P 1. 10. 9.3*e 10.4 12.8* United States4 - - - - 2.8 5.8 1.3 - 29.4 26.1 20.5 38.5 35.6 41.6 26.3 29.6 106.5 113.7 98.5 13.2 122.6 128.2 79.2 99.8 5.8 13.1 16.1*e 20.4 - - - -

Centrally-Planned Countries5 1.5 0.7 3.4 1.8 2.2 2.4

Czechoslavakia 0.4 0.4 0.7 1.1 I. 1 1.2 German, D.R. - 0.1 0.3 0.1 0.2 0.5 Romania 0.3 - 1.6 0.2 0.3 0.7 North Korean _ 0.8 0.2 0.8 0.4 0.6 - *Ferro-nickel. Estimates. For purposes of comparison the figures for the EEC cover ten member countries. 2 Ores and concentrates figures cover also scraps and matte. Japan imports ores and concentrates, as well as matte, ferro-nickel, unwrought refined nickel and nickel alloys. 4Figures for intemediate products include nickel oxide in gross weight (000'metric tonnes) i.e. 1970 - 5.7; 1972 - 5.4; 1975 - 4.0; 1978 - 5.5; 1980 - 4.2; 1981 - 3.91 1982 - 2.8; 1983 - 3.8. The figures in this table excludes trade amongmember countries of the CMFA. Statistics for the years preceding 1975 are not available. MDF/W/21 Page 54 Table15

Direction of Trade by MainImporters, 1983 (thousandmetrictons)

Matte, speiss and other Importing countries Ores andconcentrates intermediateproducts of Uuwrought Nickel nickel metallurgy _

3.' Canada Total (Ni contant) 29.3 Total Australia DominicanRap. 0.3 Austria 0.3 EEC 0.7 Brazil 0.1 Norway L.0 Chile 0.1 United States 1.4 EEC 5.8 Norway 2.7 Peru 0.1 South Africa 1.3 United States L2.3

EEC Total 0.1 Total 63.6 (i) Total (ferro-nickel) 125.8 Austria 2.2, Australia 7.2 Brazil 5.9 Austria 0.4 Colombia 5.1 Canada 26.6 Dominican L4. Cuba 2.2 0.4 New Caledonia 5.7 lndonesia 7.G O.L Japan 9.* South Africa 0.2 New Caledonia 79 *8 Spain 0. L 0.6 Sweden 0.1 United States 0.L (ii) Total (unwrought)htavr=ths) 77.5

Canada 7. 1 Cuba 0.3 4.9 Norway 9.5 philippines 0.9 South Africa 7.7 Switzerland 0. 1 United States 13. & USSR 15.4 Zimbabwe 4.0 Other 0.5

Finland Total (gross weight) 12.2 Toctl (Ni contant) 9.9 Total 5.O Norway 12.2 Australia Australia L.2 Canada 4.9 Canada 1.7 EECUC 0.4 0.3 0.3 USSR 1.C4 Other 0.1 India² Total 0.1 Total 1.9 Total 9.3 Netherlands) :TT Australia Cuba 0.8 Canada 1.6 EEC 1.0 Cuba 0.2 4.2 0.2 NorwayFinland 0.3 Philippines 0.1 Singapore 1.1 United States 0.2 USSR a.*

______.___ .______. =iw ¹Includesscrap. ²For theyear 1981-82. 3Ferro-nickel.

4lncludes mixed oxide and nickel salts. Sources: Canada, Finland, Japan: Metal Statistics Bulletin, January 1985, World Bureau of Statistics, London. EEC: Nimexe 1983, Analytical Tablesof ForeignTrade, Exports, Eurostat. Finland: Foreign Trade 1983, Vol I, Official Statistics of Finand, Board of Customs,Helsinski1984. India: Monthly statistics of the ForeignTrade of lndia, Vol II- Imports, March 1982, Diractorate General of Commercial IntlligenceaelTac*ti&tice,and Stalasies. Calcutta. Japan: Exports and Imports/83.12, Japan Tariff Association. Spain: Estadistica del ComercioExterior de Espans, Tou I, Enaro-Diciembre 1983, Direccion General de Aduanas. Sweden: Utrilkeshandal 1983, Kwartals Statistic import, Januari-december, Statistika Contralbytan. Norway: Commodity Trade Statistics: Jan-Dec 1983, UN Statistical Office. Table 15 (cont'd) MDF/W/21 Direction of Trade by Main Importers, 1983 Page 55 (thousand matric tons) Matte, spaise and other Importing countries Ores and concentrates intermediate products of Unwrought Nickel CamA__ .TaPc Total (gross weight) 2 297. 1 Total (grossweight) 3S.: (1) Total (ferro-nickel) 36.7 Indonesia Australia (grossweight New Caledonia 1. 135. 7 Cuba 0.: Colombia 2.3 Philippines 452.6 lndonesia 21.; DomonicanRep. 7.0 lndonesia 10.6 New Caledania L6.8 (iil) Total (refined nickel) il.) 2J.1 Australia Canada 7.4 EEC 0.5 0.8 Norway L.9 Philippines 2.3 South Africa 0.6 United States 2.0 USSR 5.' 2.0 Other 0. 1 Total (gross weight) 63.1 Canada 56.1 EEC Finland 1. lndonesia 0. South Africa 0. United States Spin Total 0. Total 11.0 0. 2.8 Canada 1.6 CubaEEC Dominican Rep. 0.7 Norway EEC 6.1 United States 1. Finland 0.1 Other O. New Caledonia 0.3 Norway w 0.2 philippines 0.1 South Africa 0.4 United States 0.6 Zimbabwe 0.6 Total 12.93 Austria 0.5 O4. Brazil 2.S chr Colombia 0.6 DominicanRep. 2.2 EEC 0.7 lndonesia 1.3 Japan 0.9 New Calendonia 4.0 Yugoslavia 0. L United States 2.8 (i) Ferro-nickel total (Ni content) 15.1 Other weight) otal Total(gross W.7 Other 32.1 Total (million Total (million 31.3 coutant pouned) content pounds) Brazil 1.9 SEC&I Colombia 4.3 Dominican Rep. 16.0 0.4 EEC (Netherlands) 0.6 lndonesia 1.0 Japan 1.8 New Caledonia S.1 Yugoslavia 0.3 Other 0.1 (ii) Refined nickel Total 84.7 Australia 10.1 0.1 Canada 38.3 2:_. _ . EEC 5.3 Finland 3.1L Japan 0.1 Horway 11.3 Philippines L. 1 South Africa 4.0 USSR 4.0 Zimbabwe S 4 ______I~~~~~~~~~~~~ Other MDF/W/21 Table 16 Page 56 Direction of Trade by Main Suppliors, 1983 (thousand matric tons) Matta,speiss and other Exporting countries¹ Ores and concentrates intermediate products of Unwrought Nickel nickel metallurgy

Australia Total (gross weight) 863.7 Total n.a. Total n.a. EEC 412.1 Japan 466.9 Philippines 1.4 Other 1.7 Brazil Total 15.5 Switzerland 1.6 United States 2.7 Canada Total (Ni content) 40.15 Total6 78.1 | EEC(United Kingdom) 17.3 UEC 19.6 Norway 22.8 United States 42.9 Other C Colombia7 Cuba8 Total 37.8 Austria 0.8 Czechoslovakia 3.5 EEC 6.6 Germany D.R. 1.4 Hungary 0.6 India 0.3 Japan 1.4 Korea, Rep. of 0.5 Mexico 0.2 Poland 0.5 Romania 1.4 Spain 1.0 Sweden 0.7 . . USSR 18.1 Other 0.8 Dominican Republic * Total (gross weight) 53.8 EEC (Netherlands) 1.3 United States 8.2 Other 44.3

¹Botawana exports copper and nickel matte mostly to the United States - detailed crade information is not available. Zimbabwe exports refined nickel products to Western Europe, and theUnited States - detailed crade information is not available. 2Quantity exported of domestic production. 3Value of USS205.6 million (quantity and destination are country confidential) 4Value of USS132.4 million (quatity and destination are country confidential) 5Contains nickel matte 6lncluding nickel oxide sinter 7Since mining stated in 1982 the annual ferro-nickel production estimates at 22.5 thousand matric tonshas been exported to Europe, Japan and the United States - detailed trade information is not available. 8Figures for 1980. Cuba export matte, nickel oxide, and nickel oxide sinter 9Value of USS94. 7 million (quantity and destination unspecified) Sources: Canada, Dominican Republic, Finland, Japan, New Caledonia, Philippines, United States: Metal Statistics Bulletin, January 1985, World Bureau of Statistics. London. Australia: Foreign Trade, Exports and Imports, 1982-83, Part 1, Australian Bureau of Scatistics. Brazil: Comercio Exterior do Brasil, Vol.1, Exportacao, Banco do Brasil SA., CACEX. Cuba: Commodity Trade Scatistics, Jan-Dec 1980, UN Statistical Office. EC: Nimexe 1983, Analytical Tables of Foreign Trade, Exports, Eurostat. Indonesia: Exports 1983, Buro Pusat Scatistik; Mining Annual Review 1984, published by Mining Journal, London, June 1984. Norway Commodity Trade Statistics, Jan-Dec 1983, UN Statistical Office. South Africa: Foreign Trade Statistics, Vol.I, Imports and Exports, Calendar Year 1982. Exchange rates: (i) Australia 1983: US$O.9025 per AS; (ii) South Africa 1982: US$0.9228 per rand. International Financial Statistics, IMF, 1984. Table 16 (cont'd) MDF/W/21 57 Direction of trade by Main Suppliers, 1983 Page (thousand metric tons) Matte,speiss and other Exporting countries¹ Ores and concentrates intermediate products of Uwrought Nickel nickel metallurgy EEC Total (gross weight) S.5 (i) Total (Ferro-Nickel)1) 14.9 Austria 0.1 Austria 1.3 Canada 1.3 Finland 4.7 Spain 0.7 lndia 0.6 Swedon 0.9 Spain 4.6 Other 2. 5 Sweden 3.8 (ii) Total (unwrought) 11.3 Austria 04 Canada 1.6 China, P.R. 0.7 Czechoslovakia 0.9 Germany, D. R. 0.3 Hong Kong 0.2 India 0.6 Iran 0.3 Japan 0.7 Pakistan 0. 1 Spain 0.9 1.0 Switerland 0.2 Turkey 0.2 United States 2.0 Other 1.1 Finland Total (gross weight) 1.0 Total (Ni content) - 11.3 Norway 1.0 Czechoslovakia 0.3 EEC 5.2 Germany, D.R. 0.2 Hong Kong 0.3 Japan 0.9 Portugal 0. 1 Romania 0.2 Spain 0.2 Sweden 0.8 Switzerland 0.2 United States 2. 7 Other 0.2 Indonesia Total (gross weight) 515.0 Total (Ni content) 17.1 Total (Ni content) 5.7 Japan 515.0 Total gross weight) 46.0 EECNetherlands) 12.8 Japan 33 0 Singapore 0.1 Japan Total (gross weight) L3.7 EEC 8. 1 Korea,Rep.of 0.2 United States 5.0 Other 0.4 New Caledonia Total (Ni content) 20.3 Total (Ni content) 8.0 Total (Ni content) 23.0 Japan 20.3 EEC (France) 7.0 EEC (France) Other L.0 Other 11.0 Norway Total (gross weight) 10.0 Total 30.0 Finland 10.0 Argentina 0.2 Austria 0.1 Brazil 0. 1 Canada 1.5 EEC 8.5 Hong Kong 1.9 India 0.6 Indonesia 0.1 Japan 18 Korea, Rep.of 0.1 Mexico 0.1 Singapore 0.2 5 Spain 0. 1 Sweden 0.4 Switzerland 1.1 United States L3.0 Other 0.4 Philippines Total (Ni content) Total 12.1 I.0 Japan 4.0 United States 5.8 Other L.2 South Africa Total i.a.- 9 United States Total 20.3 Canada EEC (Neherlands) 17.4 Other ~~~~.2.5 MDF/W/21 Page 58

Japan, United States, India and Spain. Brazil exports most of its nickel production in the form of ferro-nickel and the rest in the form of electrolytic cathodes, with exports going mainly to the EEC, Switzerland and the United States. Botswana has been exporting copper-nickel matte for about a decade mostly to AMAX in the United States, and until recently to Zimbabwe (RTMZ). Zimbabwe has been a major developing country exporter of refined nickel since 1972. Its exports, mainly in the form of nickel cathodes, go to the EEC, Japan, Spain and the United States. Nickel production in Colombia began in mid 1982 and the totality of its production is exported as ferro-nickel to the EEC, Japan, United States and Sweden. Cuba exports some oxide to the EEC, India, Japan and Spain, but its main exports are nickel oxide sinter which go to the EEC, India, and other unspecified countries. 88. Exports of Canada, the biggest exporter of primary nickel in the world, comprises of matte, soluble nickel oxide, nickel oxide sinter and refined nickel. Matte and nickel oxide are exported by INCO and Falconbridge to their refineries in the United Kingdom and Norway respectively, while most of the oxide sinter exports go to the United States and the EEC. Canada's refined nickel exports go mostly to the United States and the EEC with the rest going mainly to Finland, Norway, Spain and India. The only other developed country which exports intermediate nickel products in substantial quantities is Australia. Although no detailed list of export markets is available in Australian national statistics, importing sources indicate that most of the exports of Australian nickel concentrates, matte and other intermediate products go to Japan, United States, EEC, Canada, and Finland. 89. Developed country exporters of refined nickel, including ferro-nickel, are numerous since many developed countries have refineries which produce for both domestic consumption and export. Exports comprise refined primary nickel as well as end use semi-manufactures. Canada, Norway, Australia, United States, South Africa, EEC, Finland and Japan are the main exporters of refined nickel among the developed market economy countries. Apart from trading among themselves, exports go to other developed countries without or with only limited nickel refinery production, such as Sweden, Switzerland and Austria. Exports also go to consumer developing countries and some centrally-planned economy countries. The direction of international trade in nickel scraps is not always shown in available statistical sources, but by virtue of being the main consumers of refined nickel products, developed countries are also the main exporters of used scrap which normally find markets in countries with nickel refining facilities depending on the nature of the scrap.

A fourteen year agreement has been signed (March 1985) by which Falconbridge International of Bermuda will replace Amax of the United States as the main customer for Botswana's nickel matte exports. Falconbridge will take 6,500 tonnes of matte in 1985, 21,000 tonnes in 1986 and 42,000 tonnes annually from 1987 until the agreement expires in 1999. It will refine the matte at its Kristiansand refinery in Norway. It is hoped that the remaining 6,000 tonnes of Botswana's annual production will be taken up by Zimbabwe (RTMZ). MDF/W/21 Page 59

90. Among the centrally-planned economy countries the main exporters of nickel products to the non COMECON countries are the USSR, Hungary and the German Democratic Republic. Exports of the USSR, which are mainly in the form of electrolytic cathodes, go to the EEC, Finland, Japan, India, the United States and a number of other markets. 91. Table 15, which gives an outline of the direction of import trade in nickel products, shows that Japan is the main importer or nickel ore while Canada and Finland appear to be the other major importers of nickel raw materials mainly in the form of concentrates. The main importers of intermediate nickel products mostly in the form of matte, and nickel oxide, are Norway, Japan, United States, EEC, Finland and Spain. The imports of Norway are mostly matte from Falconbridge mines in Canada. Japan's imports are mainly nickel matte and speiss, while intermediate imports of the United States include matte, nickel salts. The member countries of the EEC import matte and oxides mainly from Australia and Canada. Finland receives its import of matte and nickel oxides mainly from Canada and Australia. The EEC is by far the largest importer of refined primary nickel including ferro-nickel, followed in order of importance by the United States, Japan, Sweden, Spain, India and Finland.

SECTION IV: Commercial Policy Situation 92. This section discusses commercial policy measures affecting trade in nickel and nickel products. First, it describes tariff concessions made by developed countries on nickel in the Tokyo Round negotiations referring to pre- and post-Tokyo Round rates. It also lists tariff concessions made by other countries. This part is followed by an analysis of trade follows in nickel under different tariff treatment for countries participating in the Tariff Study. Information on tariff treatment and trade flows for certain developing countries is also presented. Some reference is made to the problems of tariff escalation and effective tariff protection in the nickel industry. This section is concluded with a description of non-tariff measures applied to trade in nickel and its products which have been notified to GATT. 17. Tokyo Round Negotiations: tariff assessment 93. In a series of trade negotiations held in GATT, m.f.n. duties on nickel and nickel products have been reduced and bound in many countries. In this section, the main attention is focussed on the Tokyo Round negotiations and its results. It should however be borne in mind that any attempt te measure the trade importance of tariff reductions encounters a number of technical difficulties. "The main problem stems from the impossibility to correctly assess the volume of trade which will be generated by the agreed duty reductions. Instead of the future trade increment the past volume of trade is usually taken into consideration when the depth of the duty cuf on individual customs tariff lines is combined in the overall assessment". The methodology worked out by the GATT Working Party on the tariff study was based on the comparison of the average level of duties in the reference period before the negotiations on the agreed concessional rates. Two tariff averages were used: the first tariff

1The Tokyo Round of MTNs, Report of the Director-General of GATT. MDF/W/21 Page 60 average was a simple arithmetic average of duty rates; the second vas a weighted average giying to each duty the weight of imports on which such duty was collected. 94. Table 17 presents a comparison of pre- and post-Tokyo Round average tariffs on all industrial products (excluding petroleum) with tariff averages on unwrought nickel, nickel semi-manufactures and metal manufactures (other non-ferrous metals included) for nine developed country markets. eriff averages of all duty rates are calculated using the m.f. the national tariff llne level (in 1977, in some cases 19- -ntry concerned. Simple and weighted tariff averages are bro ree groups of products divided according to the stage of lable 17 shows that tariff averages, both simple and weighted, : nickel and nickel manufactures are, in most countries, an those on all industrial products taken together. The only exception is the weighted tariff average on nickel semi-manufactures in Japan. With respect to metal manufactures (other non-ferrous metals included) eight out of nine country markets listed in Table 17 have higher than average tariffs on either a weighted basis or on both simple and weighted basis. -le only exception is Sweden. However, in examining tariff averages gven in Tables 19 through 30 it can be noted that in Canada, Japan and the United States the simple tariff averages on nickel manufactures are higher than the simple tariff averages on all industrial products. In contrast, Canada and Japan excepted, simple tariff averages on nickel manufactures are in most countries lover than those of metal manufactures (other non-ferrous metals included). The weighted tariff averages are not comparable as they refer to different trade years. The small difference between simple tariff averages of unwrought nickel and nickel semi-manufactures given in Table 17 and simple tariff averages indicated in Tables 19 through 30 is due to the fact that in Table 17 the whole of the products falling under CCCN positions 75.04 and 75.05 are considered as vrought products (including powders and flakes and unwrought nickel anodes).

~~~~~~~~~~~~~~~~ "1The two methods can lead to very different results and such difference is easy to explain. In the weighted average the more trade is flowing under the duty, the more importance the duty is given in the calculation. At the same time, logically, the lower the duty the larger tends to be the volume of trade which flows under such duty. Thus, the weighted average will tend to give more importance to low duties and, at the other extreme, will ignore duties which are se high as to be prohibitive. For these reasons, the weighted average has a downward bias. On the contrary the simple average gives the same importance to each duty whatever its level. It could thus assign excessive importance to residual tariff items or to duties facing products of little importance in world trade. Therefore, the simple average should in principle give an upward correction of the weighted average bias." The Report of the Director-General on the Tokyo Round of Multilateral Trade Negotiations. 2Tariff study based on more recent trade statistics is not available for all markets covered in Table 17. MDF/W/21 Table 17 Page 61 Pre-Tokyo Round and Post-Tokyo Round Tariffs in nine Developed markets (Percentages)ll

industrialAll Nickel Metal¹ products Unwrought semi-manu- manufactures excluding Nickel factures petroleum

Pre Post Pre Post Pre Post Pre Post

Nine tariffs combined S 10.4 6.4- 4.0 1.6 7.7 4.3 9.8 5.9 W 7.0 4.6 0.6 0.2 4.5 2.9 9.3 5.7 United States S 11.2 6.3 0.0 0.0 9.5 5.1 9.9 7.9 W 6.3 4.3 0.0 0.0 1.8 1.2 5.5 4.5 Canada S 12.6 7.3 11.7 6.8 5.9 3.5 14.6 8.5 W 12.7 7.8 0.0 0.0 1.0 2.9 16.1 9.4 Japan S 10.2 6.0 16.1 4.5 12.1 5.5 10.4 5.4 W 5.4 2.7 4.0 1.4 12.7 5.6 9.3 5.2 Austria S L1.7 8.1 0.0 0.0 8.2 5.0 15.9 9.6 W 8.9 7.7 0.0 0.0 9.9 5.9 19.8 13.4 Finland S 13.2 11.4 0.0 0.0 1.2 0.7 8.8 6.8 W 6.9 5.5 0.0 0.0 1.8 0.3 7.7 6.2 Norway S 8.5 6.7 0.0 0.0 2.1 1.6 7.8 5.3 W 4.2 3.1 0.0 0.0 0.0 0.0 6.9 4.5 Sweden S 6.0 4.8 0.0 0.0 1.1 1.0 5.1 3.8 W 5.6 4.0 0.0 0.0 0.8 0.7 5.3 3.9 Switzerland S 3.7 2.9 0.1 0.1 1.1 0.9 3.2 2.4 W 2.9 2.2 0.0 0.0 0.5 0.5 3.8 2.7 EEC S 9.1 6.4 0.0 0.0 5.1 3.7 7.8 5.6 W 6.5 4.6 0.0 0.0 5.6 3.9 5.8 5.8 S: Simple average. W: Weighted average.

¹Metal manufactures include all non-ferrous metals

Source: GATT, Tariff Study, 1980. MDF/W/21 Page 62

95. Tariff concessions granted on nickel and nickel products in the Tokyo Round vary according to different products and countries. On the basis of the information on pre- and post-Tokyo tariff treatment of nickel and nickel products in the countries participating in the MTNs presented in Annex 1, the following observations can be made: (i) With the exception of Australia, m.f.n. duties on nickel and nickel products are bound by all developed countries. Australian m.f.n. tariffs are unbound and m.f.n. duties shown in Annex I under the post-MTN represent m.f.n. rates applied as from 1 January 1985. New Zealand does not bind m.f.n. duty on ex CCCN 75.02 - Other. (ii) Most m.f.n. duties are ad valorem. Switzerland applies low specific duties to all nickel products. M.f.n. specific duties are also applied by Austria on ex CCCN 75.02 - nickel wire, by Japan on ex CCCN 75.01 - unwrought nickel, ex CCCN 75.03 - foil, powders and flakes and CCCN 75.05 - electroplating anodes. In the Tokyo Round the United States reduced its specific rate on TSUS 620.30 - flakes to duty-free. (iii) In the Tokyo Round, the majority of the positive m.f.n. rates on nickel were reduced. Only some low specific rates on nickel chemical compounds, ferro-nickel and unwrought nickel in Switzerland remained unchanged. Tariff cuts were between 6.7 and 100 per cent. According to the "harmonization" tariff cutting formulae used in the Tokyo Round, tariff cuts on higher rates were more significant than on low rates. This approach has contributed to the dimunition of the incidence of tariff escalation. However, although most developed countries apply duty-free treatment on nickel ores and concentrates, they grant tariff protection to further stages of nickel processing. In Canada and Japan tariff protection starts beyond the mining stage while in other countries such protection is accorded to nickel semi-manufacturing and manufacturing (Austria, EEC, New Zealand, Norway, Sweden, and the United States). In most developed and developing countries, tariff protection increases with a higher degree of processing. 18. Trade in nickel and nickel products under different tariff treatment according to stages of processing 96. The purpose of this discussion is to give an indication of the magnitude of trade flows in nickel and nickel products under different tariff treatment according to stages of processing for a number of countries for which more detailed statistical information was available. Three sets of Tables, with varying degrees of detail have been established for this purpose. First, Table 18 provides a summary of trade in nickel and nickel products under different tariff treatment in twelve developed country markets and some developing countries. Second, Tables 19 to 30 give information on trade flows for the same twelve developed countries at tariff line level broken down by stages of processing as well as by different tariff treatment. Thirdly, flows in nickel and nickel products by the major developing country importers included in Table 18 are shown in Tables 31 to 41 based on information gathered from relevant national Table 18 Summary of lmports of Nickel andNickel Products under Different Tariff TreatmentinTwenty-Three Countries (US$'000)

Total lmports GSP Other Preferential Treatment Country Yeartal Import, ___ y. ___ __ - _LboJrd - d RCountrte w ch tées to thild X% Value %Value ntialRateatmente x RateValueX prefereIvua[ tren__ Unbound Bound Value | Val. | X i.isle t 1I ranced Astralla 198-1 60,448 100.0 49,001 81.2 1,713 2.8 4.0-20.0 12.5-25.0 4,528NZL, PNG, CAN,eeCommonwealth.1 Frea 5,022 8.3 1ICC,

BCRpbd&ld 1982 72,760 100.0 72,013 99.0 1.8-5.I 152 0.2 Ffee - FMee 595 0.8 EI:Em&,I3SID(1<,

S,CSK, DOR, 1902 24,313 100.0 13,447 55.3 3.8-10.4 7,514 30.9 hee- - Free 3,352 13.8 Aloe,(lI (s;WR

Japan 1982 584,636 100.0 372,998 63.8 3.1-10.0 150,606 25.8 Frea 571,130 9.8 S, CAN, SPARTECA (Pacific) 18,974 100.0 17.905 94.4 5 643 3.4 Fre 1 0.0 Fi.. 426 2.2 |ICM4,S 'llô(Fc1f1c), tkavayFTA,EEC co ntries 167,785 100.0 161,190 99.6 2.2-4.6 30 0.0 Fiee - Fme 565 0.3 EME eaumrien ES62 120,259 100.0 113,39l 94.3 1.4-5.8 2.853 2.3 Frec - Ftee 4,015 3.3 LFf,.EE ;P SwMtzeîiElTA, EEC ESP 40,439 100.0 29 0.5 0.1-2.7 6,801 16.7 Free 409 1.0 Frie 33,200 82.3 FMECES? United StateN, NTI63 723,780 100.0 667,536 92.2 2.5-10.0 52,848 7.3 Free 3,388 0.5 Free 8 0.0 CAmIWI Armentib LADI981 6,988 100.0 10-38 30-40 6,923 n.a. 65 0.9 ADl brazil LADI3 6,415 100.0 Fiee-SI 10-15 6,361 9. 2 n.a. 54 0.8 AI Colkaia 198ALA 4,174 1OU.0 5-30 4,746 99.4 a.a. 28 0.6 "JDI fka WX9 1983 35,089 100.0 35,089 100.0 lUia 1980-81 49,952 100.0 40-100 49,952 100.0 Kurea, Rep.of 1983 24,8Q4 100.0 Free-30 20 24,8.É 100.Q volaysla 1982 12,929 100.0 Fice-lO 12,929 100.0 Stitpore 1983 38.713 100.0 38,713 100.0 SFal 1982 E , EFTA9 100.0Ee-24.4 Fte--20 34,951 63 pree-18.3 20,478 3.9 DEXC.fl

¶hailatd 1982 8A4)ANB 100.0 1-50 8,406 IW.0 0.9 - PSEFM Yujpslîvla 1980 57,833 100.0 5- 15 3 51,833 MDF/W/21 Page 64 statistics. ln addition to the individual country Tables, Table 42 indicates m.f.n. rates on nickel and nickel products applied by some countries. 97. Tables 19 to 30 were established on the basis of the tariff assessment listing for the countries participating in the GATT tariff study. The trade flows in value terms (US$'000) refer to 1982 data (1980/81 for Australia, 1981/82 for New Zealand and 1983 for the United States). The Tables indicate imports on tariff line basis from m.f.n. sources, imports from GSP beneficiaries and imports under other preferential treatment. They also show shares of imports under different tariff treatment in different stages of processing as well as in total imports of nickel and nickel products. Additional columns give the principal exporters under each treatment. 98. Each tariff line shows tariffs granted to the item under different tariff treatment. The m.f.n. treatment relates to MFN final rates. In certain cases footnotes indicate lower rates actually applied (New Zealand) or imports under by-law provisions (Australia). For the purpose of comparability, specific rates of Switzerland were converted to ad valorem equivalents on the basis of 1982 trade figures and reference is made to Annex I where specific rates are indicated. The m.f.n. rates are broken down into duty-free and dutiable rates, bound and unbound. The GSP rates for Austria and Canada refer to final GSP rates. The current GSP rates are gradually being reduced in step with staged m.f.n. reductions. GSP rates for other countries refer to 1982 schemes (1980/81 for Australia, 1983 for the United States). Other preferential treatment refers to preferential rates of duty granted to certain countries or regional groupings. (i) Developed Countries 99. Australia is a major producer and exporter of nickel products. In 1983 it had the third largest mine production of nickel in the world, coming after the USSR and Canada. Its range of production extends from primary ores and concentrates to semi-manufactures. Although it is a major exporter of nickel products it imports certain nickel products such as scraps, unwrought nickel and alloyed products, chemicals, semi-manufactures etc. Australia's total imports of nickel products in 1980-81, excluding chemicals,¹ amounted to about US$32.6 million. Estimated together with chemicals, total imports amounted to about US$60.4 million. Imports of ores and concentrates were marginal amounting to about 1 per cent of total imports excluding chemicals. The pre-MTN tariff on these items was unbound at zero. However, the operative rate as of 1 January 1985 was 2 per cent while GSP imports enjoyed duty-free access. Australia imported only a small amount of intermediate nickel products. 100. Imports of matte accounted for 3 per cent of total nickel imports, excluding chemicals, mainly from Canada. The import duty on this item is the same as that on ores and concentrates. Imports of ferro-nickel (ex73.02) accounted for about 5.2 per cent of total imports of nickel products, exluding chemicals, and come mainly from New Caledonia. The pre- and post-MTN rate of import duty is zero and is partially bound.

¹Statistics on nickel chemicals are combined with those of other chemicals falling under the same CCCN heading. ²This is a fiscal duty which has now been incorporated into the import tariff system. Table 19

of Processing country:Australia lmports of Nickel and Nickel Products under different Tariff Treatment According to Stages YEARtu-M& (in US$'000)

ta&. S .S.aIa I ______Id. ,s ic. ______.1i.am,_ as a sa .îlil Value Origin OsîsIa Ve , 81.1. ,,_ér. ... 0. t a 13à 14 15 16 18 2021 23 e ls s i Va i V l `u lh.ai as_ ___24 3 I O.0t i l 3... mmd14 1 >30 Ix136 Il e. Il .0 _ 0 _ _1 3 lieeîI13 101.0 li0 140.0

010 Cm balls CAMuESh1 Walloy.d O . F41a 1,0<) att.ymd ,1311.1 £KC,gUJ,C 31.3.8.000 611s 14 ML Wu as z, ee hu., -.Ic0*l.aI 14 1.181 A& 431 14 tif. l. CAN,eC,W a à.',. g . W'.. SI-sisal tIlà.6 soe.0 0.0 0.8 14.124, S.Pab 0.1 IVU S,00 11.0 ._a3e _ - .,a iac9 . -s -C -it

31êa ».o m .t. 31.4.10 3 I00 00 IS "aU0l as«^ w, vu *.Csu uo . » .m &.»

" *XO1.04180te MZ 4?11.a z VIAS accèd I ts'' e, 1.3.30. sa 6,431 si.nu îo (.sC,1416,J 80.16s.018.30,30,00 I.0313" 1"lu O «..cm fflsu0 15.06" 3,115 11 UUQJ8U il 31 sa..380 81 ,31 ,U, ou.t ___0. 0,-i.330* 106.6 là.3 31,4.1 04.1 131.31-1sa 4,418 11.0 ______11.0'.0ou 9105 a.. UC.MAJU s. 0 inI UO u3 31.46 ou 9SAl à1._ u-cet.îI ma8 11. 46 14.8 01 6. W.. I 1.VS S. 1.6. 01,4446 10.0 40,6o1 01.3 1.111 3. 483.1 IS î 4,13*V. .. o6.Wa 1,03 0.i

80usi 1. Luat.a1im Jatgi ug#a_4Ic.U«.iaI Cieu-cr . Clem Lit.if $ha"y dès." .die pu-mîde d.îalleO tg." ia.. taE..a&i e théo, lima. Réf«C fi;uu hi. ... 16." . he Oiri Is. Auî.li..< à. gau*adlOsa10-1 mmgc11a S1ra--i Saalici euhu . . 1,00-1. 1.44 d 9s As, lDele*.1 Dl^eeal WletamleI 9lhatcic. ½..îîîic gi id

'34îî.îa.&Y a.Mi Caa4 la3.1IlA O." d.ea . îeseo £10.00osPlat. uAsiu I .. MDF/W/21 Page 66

Australia's imports of unwrought nickel and nickel alloys (75.01) accounted for about 54.3 per cent of total nickel imports other than chemicals. Imports of unwrought nickel come from Canada, the EEC and Sweden. While those of unwrought alloys come only from Canada. The post-MTN rate of duty as at 1 January 1985 was 2 per cent but zero under by-law. Imports of brought nickel products falling under CCCN headings 75.02 to 75.05 accounted for about 33.4 per cent of total Australian imports of nickel products other than chemicals. The pre-MTN duties on imports under CCCN headings 75.02 and 75.03, mainly from the EEC, Japan, Sweden and the United States, were unbound at zero, but post-MTN rates as of January 1985 were quoted at 2 per cent unbound. Imports of nickel products falling under 75.04 were subject to pre-MTN duty of 20 per cent (free by by-law) and GSP rate of zero. The post-MTN rate as of January 1985 was 20 per cent for tube and pipe fittings and 2 per cent for others, but were all free under by-law. Import of electroplating anodes of nickel (75.05) were negligible and were subject te pre-MTN zero duties. Post-MTN duty rate in January 1985 was 2 per cent and GSP imports were duty free. Imports of other finished manufactures of nickel accounted for less than 1 per cent of total imports of nickel products in 1980-81; pre-MTN imports were subject to a high compound rate but were zero under by-law and the situation was about the same in January 1985. 101. Australia's imports of nickel salts and chemicals appearing in Table 19 under CCCN headings 28.28 to 28.48 are difficult to evaluate since they are only part of their respective CCCN headings and are not identified individually in trade statistics. With the exception of chlorides and oxychlorides of nickel (ex 28.30) all imports of this group of products enjoyed a pre-MTN unbound zero duty. Chlorides and oxychlorides of nickel were subject to a partially bound pre-MTN duty of 25 per cent reduced to 12.5 per cent under by-law. The post-MTN rate of duty was 2 per cent unbound as of January 1985. The post-MTN rate on all the other chemical products also stands at 2 per cent as of January 1985 with the exception of cyanides and complex cyanides of nickel (ex 28.48) which are duty-free. Imports from GSP sources are duty-free for all thes products. 102. Austria has a small refined nickel production capacity and is a net importer of nickel products vith imports ranging from matte to finished nickel manufactures. Although Table 20 indicates imports of ash and residues, these comprised all metallic ashes and residues including that of nickel. Table 20 shows that total importation of nickel products by Austria amounted to US$90.8 million in 1982. About 30 per cent of this, however, consisted of all chemical products falling under the same tariff numbers as nickel chemical products. Ferro-nickel imported from the EEC, Norway and Yugoslavia was the most important nickel product by value imported by Austria. Imports of matte, unwrought nickel and nickel alloys constituted the next important group of imports. They came mostly from the EEC, United States and Canada. There were also imports of wrought nickel products from the United States, Canada, Hungary and Japan. 103. All imports of crude nickel products, nickel chemical products, unwrought nickel products and ferro-nickel enjoy bound zero m.f.n. duties. Wrought nickel products as well as finished manufactures are subject to rates of duties varying between 5 and 8 per cent. The pre-MTN rates varied between 8 and 15 per cent. A form of unworked nickel wire (ex75.02) is subject to a specific duty. Austria is a member of EFTA and as such all imports from other member states as well as industrial imports from the EEC are admitted duty-free. Austria also offers GSP concessions on all dutiable imports of nickel products at a rate roughly equivalent to 50 per Imports of Nickel and Nickel Products under different Tariff Treatment According to Stages of Processing M1§ A-aie. toa3 !à (in US$'000)

Total OtherPreferential Treatmentl Tîtaîla

Valu. Oris Vala .r_. iae Vol- Il.ca. ae Vau Orila

à à I y à 10 la la 13 3à 6 al là le il la la 33

O aa lé.fil - lo. *sMA

la 01~~~P.01 .lIayii .14pa, >1.51 1,] , sa33 alla là.di mIe a. .euipS... 11 ire-aIlaI eU Cl l * ni34,03 510,300,13 itttts.§t » .1E1 uSCrmI C1t,C@. t* cme arlre-pia.i 050$',.o 1 cIA 3.9 In l 34,114NA-relit 100.C .C 3.1 14,31K 59.9 5.-.C 1 .c .-IVa 14 C.A

_qM 'làtel 1,631 1.e 11uSAumjl .1Vri It *smca. ,".o" ils C. 13 cAM *.a 3"..us.c à1. y6 3uSAd. . ri 1 111 s.. GAI 31 , 1 '"a "1,26sl *4,31s _34C Cs.A_ 4.9 66 31.1 e. -. I3.13 3I 91, £LCeSWs I ami*[email protected] 1,153 3135 CUI :rl L i l __ 3C.leAI Sel U0,Sa.iIXA _ aîlC.35C 14'. 146 U9C.cm a.î.. ... 4 , . sC

aalC.îlsl 6 C LC ..28.3 - 441 0*2 - _cé_o.v r! ,«

9..48iiit195 196 0. l tl Ot A lq, = *la u..c.um.8-mi, -- = _- tri ,a C~~~~~.0 .C la -V. 4S.14 1.6634 4.C 14.1 MDF/21 1GA7-89î S.Wy fil.. di -C . i11d. aisi trg. "lsa.. lafutl i tae tru... ImP.r flua.,e a e ru C l r 1 arelsa lelCallrbaaj *tralslî aa0.11 Cisîll.e. ar Mis, UW l egarat-la ielîl elîlallua, amC. Page 67 u..r mai fil"e. hsa. aI bau.01.4Bl41ai4 a.-artv .- 1et affl.e Clm uadu beadle 15.03. Irudli hi. .ai e se -i.a. la atîlfi ading 25.03.a"id aier vraa taaI, but tis atepe lrfit ..r. ceicula a l mu,t i gaelt alrsl bti gas."C tsa tarfS ratr ffld da *Larfti badlaa 9S.63. O 3ivaii1a.tae Il. %-alu dLea uatdsaeIlaI. bar...... l* m ri . i &CI- bau but 1ta4cd la th. aui et Ibmè.1 lar 'anaav for bili^surouai aid harmueit aIrbel, bllauut .1<1.1 fer16É4^glb. lra1euidîret v ca..s.

5Ad-viluroe lacîduce if e adac1î rata îalrularu "110uti trai fleura.. Setila ai,. la Lii 1. 0.alrîl prairI tSlaCcîc b, *- la fîa ai ia utarfS uaaa aiy latt.lmWrlî ai rissuata pradueea eanar su Ibeai at aIClla. MDF/W/21 Page 68

cent of the prevailing m.f.n. rate. The Table shows that 85.2 per cent of imports of wrought nickel come from duty-free EFTA and EEC preferential sources with the rest coming from the United States, Canada, Japan and Eungary. On the whole, about 99.3 per cent of imports of nickel products including chemicals entered the country duty-free and only 0.7 per cent of imports were subject to duties. 104. Canada is the largest producer and exporter of prrmary nickel products among the developed market economy countries. Its exports range from nickel concentrates and matte to finished nickel manufactures. It is, however, also a substantial importer of nickel products ranging from scraps and concentrates to finished manufactures. Total Canadian import of nickel products in 1982, as shown in Table 21, amounted to about US$206.1 million including imports of chemical products containing nickel. Imports of unwrought products. including matte and ferro-nickel, accounted for about 36.2 per cent; imports of brought nickel and of finished nickel manufactures accounted for 24.7 and 16.7 per cent respectively of total nickel imports.Imports of ores and concentrates accounted for 8.6 per cent of nickelimports while imports of nickel chemicals accounted for another 13.8 per cent. 105. As indicated in the detailed tariff information in Annex I imports of nickel ores and concentrates, as well as of ash and residues containing nickel, enjoy bound post-MTN zero m.f.n duties. Matte imports enjoy pre- and post-MTN duties bound at zero. Imports come mainly from Australia, United States and the Republic of South Africa. Imports of ferro-nickel (ex 73.02) are subject to a bound post-MTN rate of 4 per cent (GSP free). In 1982 about 67 per cent of ferro-nickel imports came from dutiable sources (United States, EEC, and South Africa), 28 per cent from free GSP sources (Brazil, Chile and Dominican Republic), and the rest duty-free from Commonwealth preferential sources (Zimbabwe). Unwrought refined nickel, of which Canada is a major producer, is subject to a pre-MTN m.f.n. rate bound at 5 per cent, (GSP free), while the post-MTN rate is bound at 4 per cent (GSP free). Unwrought alloyed nickel in the form of ingots, blocks, shots, billets, pigs, blooms and slab (ex 35500-1) enjoy a zero bound post-MTN duty, while other unwrought nickel alloys (35530-1) are subject to a post-MTN bound rate of 10.2 per cent with ceiling binding as against a pre-MTN bound rate of 17.5 per cent. There is a GSP concession, but current imports of these products from all sources are temporarily free. The post-MTN bound rate on import of nickel waste asked scrap is 10.2 per cent with a ceiling binding. There is no GSP concession on this product however, import from all sources are temporarily free. 106. As has already been pointed out above, imports of semi-manfuactures of refined nickel accounted, in 1982 for about 24.7 per cent of Canada's imports of nickel products with imports coming mainly from the EEC, United States, Japan, Sweden and Norway. About 91.8 per cent of the imports are bound duty-free on an m.f.n. basis and about 8.2 per cent are dutiable with bound rates ranging between 4.2 per cent and 10.2 per cent, some with ceiling bindings. Duties on imports from GSP sources range from zero to 4.5 per cent. Duties on import by Canada of nickel chemicals, mostly from the United States, EEC and Japan, are all bound at post-MTN rates ranging from zero in the case of sulphides and polysulphides of nickel (ex 28.35), cyanides and complex cyanides of nickel (ex 28.43) and salts and peroxysalts of inorganic acids (ex 28.48); 9.2 per cent in the case of sulphates and persulphates of nickel (ex 28.38) to 12.5 per cent in the f con2 Table 21> mpforts of Nicklt andd NicklL Prouccts under DifferentTaDriff Tea_muent Accordigo to Stgoes of Proessin ta (inUS$'000) Total l'arts Diuy Fraee ODtiable cGpP Other Preferential Treatment Tariff No. LDC,(duty free) other thantheUnited Kingdom Value Origin Value Origin Rate Value Origin Rate Value Origin.1 ighted ei Simel Vae.l Vaeua n Uundsa Bound ____ I 2 3 5 I 76 8y I9 O 1011 il 12 13 Il 14 115 Il 6 1 18 19a It 2021 2l 232 il24 Z nd. di 321,001 11,642 17.642 0 a residues aa4810501 - Su-botalî 11.642 100.0 11,642 100.0 ______

Natta 1111001, ~~~11,600 12,410 mal 1041 114 àsu.a aa1=1 I0.21 1 usa Fe..U 154000 14 14 USA ..64000101 14,401 24,411 ai xra usa.auO,

. - aa3110000 0.2 EimCUirc Vraa.àc.s la-total 4,101 100.0 3.0 34 0.0 30,010 12.1 e 5¹ 410I.21 20,445 30.4_ vro 4..î' 6. Fre-1y 7101

11100 1,60. 11366 ,uNumIc 211000 4 3 - SAuI2RIc 3316010 1,221 4,23.4 1,221 S, 3111001 12,121 2u .eu I111S012 7 102la îy 3540001 4,43.6 11110 61 .0 64641 004i40,01 4.1 . .0 aa6100011141003î ~~2,26 4. ,64 :1.02C04UIFr.NO14mun Mt ae.100001, 3,à0 1,30 IOSIZAV, lub-tctal 10,010 100.0 1.3 44,403 01.4 4.10.31 4,147 4.2 Fr...11.0 Vrae1.07 0.0 Ch-!-alae300 12.1 - il1, I1aa2101 .l 11.53e Mi uSAUC J1u cmt Fîa ..02. 00 la. - SALc,1 Ia aaOU3lOl 1,600 1,403 014,13 Vri cmcm1

ecilîGOOl0 (1,220> 10.3 o1bi>RCU2,2

u6-toeal 14,410 100.0 ee 1.1 0.2 14.410 100.0 Fra-60 Total 206,011 100.0 34 0.0 104,64 S1.1 4..31 2,1 11Fi.I 111. 21.-100 0,022

F International Financisl Statistica, 1984.eA4. rate 1982: 1.213 Cii Ollr- p ,W, 11IM en.ittsi-t Ftoctl St.ls.tîci, 1114. the icated by Candianauthorities.Insomecases, thesame tariff linesappear in different avaerag oftllea. la wo_ a, taita.- ir. ap.g. tli &Iratate et eareindicatedonly within one tariff line. Tradeweighted tariff averagehave not been calculatedowingtothe impossibilityofi rlracai amt4 c. le lupoaolhtlgty of ing stagesv crase al. ut dtOUerait proemllu tlas. MD Ç23 E s been used for the calculation theof tariff average. Ch.tult a et t îfltttaver. . oso onaccountof verying tariff ratesand therefore appears morethan etin the table. The corresponding trade flow has not been disgranated and is meiliaagainsta single tim ppîai r4Appliedrateis 5 percent andthisratehas beenused forthecalculation of the .rna . r mita ei8Imports or metal manufactures are coveredby severalas tariff lines. Figures is bracketst-.imports of the tariff item,including other n tub-total l tataaeI. 'alua o i lel«scuacttur.C 19012 -oty, a* .pLtid by C-crai authatutlea. MDF/W/21 Page 70

case of the other nickel chemicals. Imported products from GSP sources are duty-free, except in the case of nickel oxides and hydroxides which are subject to a duty of 8 per cent. 107. Mine production of nickel within the EEC is small, restricted only to some ferro-nickel production in Greece. There exists however an important nickel refining and fabrication industry in the EEC with production ranging from intermediate products to semi-manufactures and finished products. The EEC is a net importer of nickel products. Imports range from ores and concentrates to finished manufactures. Table 22, which analyses the import trade of the EEC in nickel products and their tariff treatment, shows that total imports of nickel products into the EEC amounted to about US$903 million including nickel chemicals. Imports of matte, unwrought nickel and nickel alloys constitute the bulk of EEC imports. Matte is imported mainly from Canada, Cuba, Australia and New Caledonia. Unwrought nickel comes mainly from the United States, Norway, Finland, Canada, Republic of South Africa, Zimbabwe, the Philippines, Australia and the USSR. Unwrought nickel alloys are imported mainly from Canada, Cuba, United States, South Africa and the USSR. 108. About 88.2 per cent of total EEC imports of nickel products in 1982 enjoyed m.f.n. duty-free access. Another 1.9 per cent was admitted duty-free on the basis of GSP treatment and 3.1 per cent more had duty-free access under other preferential arrangements. This meant that only 6.3 per cent of imports were subject to duties. Table 22 also shows that imports of ores and concentrates of products of intermediate metallurgy, such as matte, as well as ferro-nickel and unwrought refined nickel, enjoy bound m.f.n. duty-free access. On the other hand, imports of wrought nickel products were subject to bound duties which varied from 3.8 per cent to 5.3 per cent. The simple average duty is 4.4 per cent and the weighted average duty is 4.7 per cent. Imported wrought products subject to duties come from the United States, Canada, Japan, USSR and the German Democratic Republic, while duty-free imports come mainly from Sweden, Austria, Switzerland and Norway. Imports from duty-free GSP sources come mainly from Malaysia, Hong Kong and Singapore. Imports of nickel chemical product are subject to bound duties ranging from zero for nickel oxides and hydroxides to 12.0 per cent on cynides and complex cynides of nickel, reflecting a fairly high degree of protection. Imports of oxides come mainly from Cuba, Australia and Canada, and chemical imports subject to duties come from various sources including the United States, Japan and a number of centrally-planned economy countries. Some chemical imports come from duty-free GSP sources such as China, India and Romania and a large part come from the duty-free preferential sources such as Switzerland, Finland, Spain, Israel, Austria and Sweden. It must however be borne in mind, that these chemical imports included products other than nickel chemicals falling under the same tariff heading. 109. Finland has a sizeable nickel industry based on domestic mine production and imported raw materials. It is therefore both an exporter and importer of nickel products. Exports are mainly in the form of unwrought refined nickel and occasionally also in the form of concentrates and matte. Imports include mostly ores and concentrates, scrap, matte, ferro-nickel and unwrought nickel. Imports into Finland of nickel products, including chemicals, amounted to US$72.8 million in 1982, US$32.5 million of which comprised matte from Canada, Australia and the EEC, and US$12.4 million unwrought unalloyed nickel from the USSR, Canada and the Philippines. Table 22

ImportsNickel and Nickel Products under Different Tariff------Treatment According to Stages of Processing

TariffAverage UnboundBound Value Origin Overseas countriesandterritorides

3 1 2 4 5 6 7 9 11 8 10 12 1314 15 16 17 1819 20 » _ __ _

SaS-lotal 3,11.3 100.0 13by6 100.0 LIS~~~~~S0.1 .$4 a mW as I.Y.4 1101.11i ausus&,a 11.01.2 10.106 îS*396 a ma S

15.ti.1000 3. eci 20es V.. - l Sà(e

31.04.2000 1,596 ~~~~~~~~~~~~~~~~~~419?1 -9«gt- 11.05.0100 201 Free t oe,*ioem~~~~~~~~~e. mser" 19 ncma 5.6è 12b 4 Luim. j ree 4 IJWr. l831m1c meii .mO.0.0 61205.14 UB21.30.1000 244 ~ ~ ~~~~~ ~~~~~.3 3311 vSu 0 I -lmeW. 1 aammi

*a10.10.5.000 1,126 4195.0 4,Cl6~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~341 ** »AS 1. 16.6144 11.102~~~~~~~~~~~~~~~~~~~~~~~~~Ia 34 ~ Ir. 10 o *a1tlo.4.05 *g45: I& 41.1 *a3.4.000 .132 6.6 O.6 Cà* ".luI

lui4.14e

3TerîSl geais.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.0F i >Ige

Nickel and Nickel Products under Tariff According to Stages of ma.ri'b. lmports of Different Treatment Processing t

Value oUIIC 0 rst I Kr... Mbll . c.4. ..1 U..a...!ol.ov1vQll t1RId.f1$ e___as 116 12 913 4 5 17 18 19 20 21 22 23 LS là z ~ ~ 10~ 16 1 1 *^ X la le- le 24} de& a 3ut01.03 1.36 l.2U4w. 6 Md u «24.a..g 4SU) (SU) sa.tu.. 8..6-&o

*aSSa 51.01.10 12::.5 »a6 cm*auUc Itleja 15.11.100 161 161 ' CIAS '&&le 4.Ba ealuS.i.ffl 15,510 1 5 0*ao au . auto_ _cé e 1 1 I II 214 1S M:III 1 10.I 11 10. :

| | IS0 -i.c Ns.«/l0 |l |c | . - m 0 .C| I.8W 11.010 10 10.0 50 SIUU*uS. 3.S01000 -Sc -c. sw*a4. "à-mnu 500.8 0.3 0.0 e 50.1 .0 MI ai1.5 pe.. Us.. 35 1.0

:.a8.30.100 1.063 3.001 EKCo00o -te,11.0 10.01_ *@§X 8.O. l. _ u . n . . _.. _ t1 Id 4 0.164.0Rf.t*.aQ4 _,_11 A.",-. l~s 1.4 m vug fZ l A, UP

..29.61.00_ la? SEC SubLOtaIff*,~33~5_ 6_'ils3 100.0 litkW131._ 6 C _ _

12 8.-5.I M4.0 5.1 5. .1 31 431.6 visé une. aie 66.6 Resu 13.560 100.0 1330ts 00.0 1.iiS.i> lis *.2 -Um lia.0

distinug under three trade have tchghalebetweenunwroughtwroughtelectr-plating.lb auTrade figures been included inunwroughtnickel.a.d uBam hî t" .1. (indicated alproductsare not specified separately front ofthetariff number)thetrade flow figures may include imports ofchemicalproductsSale Wetffl .d'à ickelai b... ai el 11 MDF/W/21 Page 73

110. Imports of all unwrought nickel products and chemicals into Finland enjoy zero bound duties with the exception of carbonates and percarbonates of nickel (ex 28.42) which are subject to a bound duty of 1 per cent with ceiling binding. Imports of wrought nickel products are also duty-free with the exception of brought bars, rods, angles, shapes and sections of nickel and nickel wire (75.02) which are subject to duties bound at 1.8 per cent; tubes, pipes and blanks therefor of nickel etc., (75.04) are subject to duties bound at 1.8 per cent; other articles of nickel (75.06) are subject to a bound duty of 5.1 per cent. Since Finland is a member of EFTA, most imports of wrought nickel come from duty-free EFTA and EEC preferential sources. Imports from GSP sources are duty-free. 111. Hungary has no domestic mine production of nickel and imports almost all of its needs. Excluding chemicals, total import of nickel products amounted to US$13.4 million in 1983, 70 per cent of which was accounted for by matte, unwrought refined nickel and alloys, nickel waste and scrap. Ferro-nickel accounted for a further 6.3 per cent and the rest by wrought nickel. Table 24 shows that there were practically no imports of nickel ores and concentrates (ex 28.01) nor of ash and residues (ex 26.03). All imports other than ores and concentrates, chemicals, and ferro-nickel enjoy a pre- and post-MTN bound duty-free entry. Imports of matte and unwrought refined nickel and alloys come mainly from the USSR, Australia and Sweden. Imports of ores and concentrates are subject to a bound post-MTN duty of 3.8 per cent. Ferro-nickel which is imported mainly from the EEC and Brazil is subject to a bound m.f.n. duty of 6.2 per cent. Imports of nickel chemicals from the market economy countries are subject to bound post-' - m.f.n. duties ranging from 3.8 per cent to 10.4 per cent; pre-MTN duties, anged from 5 per cent to 2,5 per cent. Imports of chemicals come mainly from the EEC, Austria, Canada, Sweden and Switzerland. Duties on imports from GSP sources range from zero to 9.8 per cent. Chemical imports from the member countries of the CMEA are duty-free. 112. Japan is one of the largest importers of nickel products with imports ranging from ores and concentrates to finished manufactures. It is also the second largest producer of refined nickel among the developed market economy countries and is a substantial exporter of refined nickel. Including nickel chemicals, Japan's total imports of nickel products in 1982 amounted to about US$586.3 million. About 21 per cent of this was accounted for by imports of ores and concentrates, of which Japan is the largest importer. Imports of nickel ores come from New Caledonia, Indonesia and the Philippines free of duty on an m.f.n. basis. Imports of nickel ash and residues, which are also duty-free, come from Australia, Philippines and the United States. Imports of matte, also duty-free on a bound m.f.n. basis, constituted about 30.3 per cent of total imports of nickel products in 1982 with Indonesia, Australia and New Caledonia as the main source of imports. Imports of ferro-nickel, accounting for about 7.6 per cent of total nickel imports, are subject to a bound m.f.n. duty of 6.5 per cent. Most imports of ferro-nickel come from Indonesia and the Dominican Republic which enjoy duty-free GSP treatment. The remaining imports come from New Caledonia and are dutiable. Japan's imports of unwrought refined nickel and nickel alloys constituted about 19.2 per cent of total nickel imports in 1982 and comprised nickel oxide, sinter, unwrought unalloyed nickel and unwrought nickel alloys,. All imports of nickel oxide, and singer come from Cuba and are duty-free on the basis of the GSP. Most imports of unwrought unalloyed nickel come from Canada, Australia and the USSR and are subject to a bound m.f.n. duty equivalent to about 5.8 per cent. The remaining imports came mainly from the Philippines MDF/W/21 Page74

COUNTRY: Hungary Table 24 lmports of Nickel and Nickel Products under different Tariff Treatment According to stangesof Processing (in US$'000)

Tariff No. _ _ _U oti.ht.his UC < y liii> *18 ,Z :Oe.6c, V49a - - - O

e.(m CSX _0. .ea. si <4)

Is*tatII 1-80I. 18 Iim I1< -I I

.itagid 18sI.01.u no ll -4 0<484 o,îî st,a..a s*i35.01.00 u

*r.-alc a"''1'1.. I1103.00 0 1"a i41 II 1

3.unla 0 13 331 Ucaaa, tt.IîI 15.05.00 au 1 1 1 1 1c grog

-1«^ *,l l6.esI 0.1 - - A .aei rasodeso." l5 Ule . lA ." _lys4 [email protected]. 84 1111310.1 îoo. U<11 110.__ 38 - U.CAC à . lià ne 0.

34 005 dal.asîO.IS.031.8 Itl 0.0 O UC g.ê - ' " -~~~4.6.1.0 IPu ..43 Uic»«.Cm.-1.s ,**s. #ss^*5.0 Us,_ ,Xa 0UOum le0410 tu34 10 31104 ne otIer tîe -ni.lXîalrî <8 ga.14.(1 a ûsA.. 1962 Tariff averageUnbound BoundVs ,88 ----f-- -*-- -. i.. Vîlue '4 il.

1%4..laL 111,1228 811,11> 850N.AuUS,8- amico .0 6:,84.4 6,264. Cul 21.0811.01.8210 810,1il Il11 06,4.88 CA8,S00I.aI 102139 ViN. zwoAO 16 u1AUEC,0d1 VrI.Vrai 22.181.1209 9613 1. t,-acs iate 1,8s0 aId 11CJ'4228 6:.0 Fi.: 60 9,811 USAOan.etc 11.11,1 %6.sQ 6.1 le,928 Fri. 21,106 8N400,0 I1-l.1888.l ESC Vrai "11.02 824. 3s,885 ailsCam ur2,I S,8 Ila M.us~.au VI..Vrai l88.0. 1. à 1.0 186,4f. si 11.2 1,.0-9.0, m801,4. 20.1 $12616 81.0 -11 - USA VIsa 1.2 2,3 8S6,VSC,CIE Visa 110"'2.710 816 1.0 81.1 ESc ArUA,1 18016 8,08 liAsàSgCS1 rom -Il8. Il '4,102 etc tria *40.CAM VIe lii ttrcC2SUSA okL.CIJEom 1.i 2,021 USA Cau: 11.01.340 USA,tic Vr:: MI' 6. U54,SA ,I Fia "a' 1-1 USA Ut0 64,9 WASlSC1,C 21.C0'.104 28,81, 1.a 800.0 4.0 .1. 20.0 2.a 11,4.82 11.6 106 2.6 fl.ailrole ..20 14.62a 9.199 '41 a,990 COi,000,1sa t..* Ili frZ,882,i80 8,84.9 cm.4leio'I l 64. USA etc liu sai 10 1411 1:.3 Fies aîli1.11A13 li '4. CHI 2,Il iV,IJSA 202 ONOAN 1il.18.100 C'.9 18cV80,USA Fia.Vlai cauEtieau 0.20e4.1.10 8,6166 1.11 116 aKC 0LouS scaoee 910 arc t0 ti.. 1,20 aioo>' 'asa 26 m ailO1.41.1. 00 triorIo 24.,949 8.1 20,022 B'.' '4,888 86.2 ' ai.uai a 18.06.21>021JO 91,90 I 106 216a i.i:_ SA" I;: Il. salai 1106 100.0 210,9W .. soi4. 9.9J 19562190 800.0 10.1 0. 71.0-1 15. 1 i 3.1 9.11 ousoeauv atagîs oill.0 ll aiUSS1,40.fl,0îtaeî ut-.« selgî -à rsîsa. (-": under this position and therefore the 8,0.iu. lirs. th.i uslaAtifl tariff alesa. a) rCJ ..8 ts Is i i lie.. 5ApptilW.rae a tIais isgi Ilm la sari a-d ibIs Sali 6. b..u ...dSûabs.uth. uiiaa loriSi ...qa.

specifiedt eiai by "en" to of the figures of la(indicated front tariff number) the .d ec t . . trade flow mayinclude imports unspecified origin.iaj.e..ii l.ata.fia.1 uas5teili4sui MDF/W/21 Page 76

and Zimbabwe and enjoy duty-free GSP treatment. Imports of unwrought nickel alloys come mainly from the United States, EEC and the USSR and are subject to a bound m.f.n. duty of 9 per cent. Imports of nickel waste and scrap are duty-free and come mostly from the EEC and the United States. The simple average duty on unwrought primary and refined nickel products is 3.8 per cent and the weighted average is 2.2 per cent. 113. Japan's imports of wrought nickel and nickel alloy products accounted for only 4 per cent of total nickel imports. Out of the total wrought nickel imports of about US$22.5 million about US$4.5 million were duty-free on a bound m.f.n. basis. Most of the remaining imports are subject to bound m.f.n. duties ranging from 4 per cent to 7.2 per cent. Imports come mainly from the United States, EEC, Sweden and various other developed countries. Imports from GSP sources are duty-free. The simple average duty on wrought products is 5.2 per cent and the weighted average is 4.0 per cent. Japan also imported modest amounts of various finished nickel manufactures mostly from the United States, EEC and Switzerland. Apart from small imports from GSP sources which are duty-free, imports are subject to bound m.f.n. duties of 5.8 per cent and 10 per cent. The simple average duty on finished nickel manufactures is 7.9 per cent and the weighted average 6 per cent. About 83 per cent of imports of nickel chemicals were subject to bound m.f.n. duties ranging from 3.7 per cent to 7.2 per cent; imports from GSP sources were duty-free. Dutiable imports come from Canada, United States, EEC, Norway, Finland and various centrally-planned economy countries. 114. New Zealand imports only a modest amount of nickel products. Table 26 shows total imports, excluding chemicals, amounting to US$4.2 million almost half of which were accounted for by imports of ferro-nickel. Imports of unwrought nickel products including matte, unalloyed refined nickel and nickel alloys come from Canada and Australia duty-free on an m.f.n. basis. Ferro-nickel imports which come from Australia, EEC and the Republic of South Africa, as well as, imports of nickel powder and flakes from the United States, EEC and Canada enjoy bound m.f.n. zero duties. Imports of wrought nickel products amounted to US$978,000 of which 59 per cent coming from the United States, EEC, Japan and Norway were subject to a bound duty of 5 per cent. The rest of wrought nickel imports come from 1 Canada and Australia duty-free on the basis of preferential arrangements. Imports of nickel chemical products come mainly from the EEC, Japan, Norway, Canada, United States and Australia and do enjoy bound m.f.n. zero duties. Imports from GSP sources of all dutiable nickel products treated in Table 26 are duty-free. 114. Norway has a significant nickel smelter production industry based upon imported raw materials mainly in the form of matte. On the other hand, it exports unwrought refined nickel and alloyed nickel products. Table 27 shows that in 1982 total imports of nickel products by Norway amounted to about US$167.8 million, about 95.5 per cent of which was accounted for by matte imported mostly from Canada, and to a lesser extent from the EEC and South Africa. Import of wrought refined nickel accounted for only about 1.2 per cent of total nickel import while nickel chemical imports

¹Imports from Canada enjoy Commonwealth preferences, while those from Australia enjoy preferential concessions under the Australia-New Zealand closer Economic Relations Agreement. Table 26 Imports of Nickel and Nickel Products under Different Tariff Treatment According to Stages of Processing

a: 1 61- (in USS'000) TotaI 111< c»'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~SCtIwrVrlemi«,aITrmae

Value % Origin Value Rate Rate Value % Origin Rate Value % Origin

1 6 7 8 9 Io Il Il 13 84 851 16 I la 8 20 28 22 23 Z'.

Ash and residues .26.03.000 (6> (6) JPN,AUS,CHA

MO- - -.

75.01.0m8 1) ~15.01.1800 ) 7 7 Wasteandscrap 75.01.0m08 PowdersFerro-nichelandflakes ue11.02.00015.03.009 2,410241 2.410Z1.1,2A..CN Electro-plating 75.05.000 5.0 43 I.E'r -F- 1

F. r. s 1.635 IM.0 ~ 0.1 0.1 3,5859.m. 43 1.2 7. I .65.0 S USA,EEC,JPN 15.05.000 8-9I 5.0 -j .k5,( Ie Fr- -8 ______5.0 529 51.2 -ru Fr.. 39 As. 752.04.OW o O 2 M

ex.I0.00 2.563 2.563 i.WN.ec~ exIU.35.000 2.321 2.321 121.(31.JIN «ciâ.38.O0' 8.362 1,628I.UA..1U iex8.39.0oC 569 569 IS .8H.0 exA8 42.£80 5,657 5,651 15.oE.maB I .,28L4.oe00 864 864 ».SG ue1848.tM0 682 602 EU.CM4.LS4

I 9h-cotaL>C.M 14.320 100..0 4.320 100.0

T.W 15.914 100.0 5.0 ~~~~~~~~~~~~~~~~~1 1.

-- lo 'STZfln tu ci rlsçmU OrWgn. , 3 Available trade flowinfornation does not distinguish between unwrought electro-plating goods. Trade flowfigure for this item have been included under wrought nickel. 4Where the nickel chemical products are not speecified separately (indicated by "ex" in front of tariff number)thetrade flow figures may include imports of cheemical productsotherthan those of nickel. fil n Table 27 .%.

Tariff Treatment According to Stages of Processing N ImportsofNickelproductsunderDifferentrifftreatment ProseDéAnn (in US$'000)

1hl8~a.I U1a~1. Valua Z Valua I aa1 dn lh*« a

I 2 3 4 9 6 1 S 9 Io sl I2I 14 IS 56 Ie 19 20 l1 Xl il 24 Ores and 26.01.301m _

Ashand residues 3.%0 (2.611 . (2.613) D.M." S _ 100~ ~ ~~.0_ m0

». os. l.oe 60.309 160*309.c .lk.y. 11.01.2l01» 12 424C Alloyed 11.01.310 24 24 CAN,EEC Waste and scrap 15.01.6000 loi t2 EC Ferro-nickel «13.02.ÇEX1 161i ll : .omE P.kr Md il" 1S.01.M 11 004lS Iuc s Electro-plating SS.0.ï vil 10 uc,5w, Sub-total 14.311 MA.O 165.311 10.0 ~n.k0da 1.2.001 >1 4.6 _ w. _ a~. »Zs 11.02.0090 W 894 1S.03.01 27 4.4 à USA _ IM 24 71.03.20 40 4a n7504Q1îm g*:"A _ 2.2 2S _ V Vise , 1, 0 2 aàl-ccnt *)0.0 0.0 1.9 à.]" 12.S _ .. . _ a.0 _ _. 6.0 01>caIa n20.20.IU00 464 464 ac:Q1.B, .m28.30.90190 25.1 2.7a ne.WA.A . i26.39.%» 20 26 ».1.60M 74 . 14 uc .24.31.091 390 390 =28.0.091» 13> 130 EJW.WA

sub-total.20.2.90 _ _ 4.411 Ma 10.__ Finished 15.0b.UM) la 3.4 2 WA __ :, 9 .20.43.P000 l1 71U.03.0 3.S 1.9 2.4 69 97.2

30 9.6 2.24.62 0.0 3 T"l 671.81 500.0 6_7.1 I . 56S 0. 1Availabletrade flowinformation does not distinguish betweenunwrought and electro-platingwrought anodes.

2Where the nickelchemicalarenotproductsspecifiedseparately (indicated by "ex" infronofthe tariff number)the tradeflow than tnose ofnickel. MDF/W/21 Page 79

accounted for a further 2.6 per cent. Imports of other nickel products were very small. 116. Imports of all nickel products other than wrought products falling under CCCN 75.02-75.06, enjoy bound m.f.n. zero duties. In addition, all products falling under CCCN 75.02 enjoy duty-free access except gilt or silvered wire of nickel which is subject to a bound m.f.n. duty of 4.6 per cent. Products falling under CCCN 75.03 are duty-free except plates, sheets and strips of nickel foil which are subject to a bound m.f.n. duty of 4.4 per cent. Products falling under CCCN 75.04 are subject to a bound m.f.n. duty of 2.2 per cent. Products falling under CCCN 75.05 enjoy bound zero m.f.n. duties, while those under CCCN 75.06 arè subject to a bound m.f.n. duty of 3.8 per cent. Out of the total imports of vrought products and finished manufactures (CCCN 75.02-75.06) amounting to US$1.97 million, about US$1.38 million or 70.0 per cent coming from the EEC, United States and Sweden were duty-free on au m.f.n. basis, and a further US$0.56 or 28.4 per cent were from duty-free EFTA and EEC sources since Norway is an EFTA member country. All dutiable imports from GSP sources are duty-free. However, no imports from these sources were recorded. Out of the total nickel imports by Norway in 1982 amounting to about US$167.8 million only 0.4 per cent was dutiable, the rest was duty-free on m.f.n. or on a preferential basis. 117. Switzerland is a net importer of nickel products since it has no major refining capacity.. As Table 28 shows its imports of nickel products, including chemical products, amounted to, US$40.4 million in 1982. Imports of unwrought products accounted for 43.1 per cent of the total. Imports of wrought products accounted for a further 30.2 per cent, and finished manufactures accounted for the remaining 4.7 per cent. Switzerland is a member of EFTA and all imports of nickel from other member countries as well as from EEC and Spanish sources are duty-free. Table 28 also shows that out of the total nickel imports of US$40.4 million including chemicals (falling under the same tariff line) about 82.3 per cent come from these duty-free preferential sources. A further 1 per cent comes from duty-free GSP sources while the remaining 16.7 per cent were dutiable and come mainly from the United States, Canada, Japan, Republic of South Africa and various centrally-planned economy countries. 118. Imports of nickel ores and concentrates as well as of ash and residues which are duty-free are insignificant. Imports of matte, unwrought refined nickel and nickel alloys are subject to bound m.f.n. duty equivalent to 0.1 per cent. Most imports however, come duty-free from the EEC and EFTA sources as well as from Cuba and the Philippines. Dutiable imports come from Canada, Republic of South Africa and the USSR. Imports of ferro-nickel vere subject to bound m.f.n. duties equivalent to 0.3 per cent. However, over 86 per cent of imports of ferro-nickel come from duty-free EFTA and EEC sources, while dutiable imports core from the United States, USSR and the Republic of South Africa. Most imports of nickel powders and flakes come from duty-free EEC and EFTA sources with the rest coming front the United States and Canada and are subject to a bound m.f.n. duty equivalent to 0.1 per cent. The simple and weighted average duty on unwrought products is 0.2 per cent.

EFTA has an agreement with Spain by which reciprocal duty-free access is given to most industrial and some agricultural products in each others market. Table 28 a a -V COUNTRY:Switzerland _ Imports of Nickel and Nickel Products under Different TariffTreatment According to Stagesof Processing N0

ial lpagscl Natsha03/ICGbgputeesll ao .

Oll U Alulavta U tla la àe e Velu as Ue et lai i a. if lè~i iaS lalu il 2 egs 31.0Wi m...

SOiiu.SleSaa 0.0l lc eé.jîi@

0.1 A 124 3AUgUSA.U30 f gg GAI *iWayOG Ures I*141 AG lsîî.mickaA aaI.OA.I000 C*140 .1 01 ai t*AsUs II UU Ferro-nickel. P5.01.2000 tî.g 14

313 SEC.BE îluetîe-pleSAae 15.01.0440 Iii 0.1 Ail Uses1.0tro21 .?Fué.les. là91A,14A

. 5 SA, AGI 5U5115*UA Ni 0~~ ~là ~~~M ~ Urle-lis .01 Riz.9a onueam êîs04 Utesre 30? "i I5.03.A21 23, 4.16 Iglill "àle UC~.M8E 15.01.1100 il'S Fretspret. sg:se.- e etc is4.14.00 2.1 ass ulCB Ii.13.32IlIS.03.3 .l UreEesA.U - l ss - UES iS.l-fa3a 10. .0 îe0. 4 8.1 u..os - s.51 etc*M OieoitaAa agiO.20.OII0 3*l4A6 as ...-I&..o..-i .:.. u. VAS1 01.

20.10.3500 ~~~~ ~ ~ ~~~ ~ ~~~~~~~~~~ ~~~~~ ~~~~~~~~~~~~~~~~~~~~~0.1 A 384 WUa.làe A-GAIueC .4 Sc,13au3.UI *-là.10.440S ses t. 14 eg2B.1S.100I I "Ilrs0~~ ~ ~ ~ ~~~~ ~ ~~~~~~~~~~~~ g ~~~~~~~~~~~~~~~~~~~~~~~~.6Oik.mIIre le UCCm ea21.S0.lOG0 330 A.0 A, iiiA.IW..JIU UsesI mca Urge 364 ESC~~~~~~~~~~~~~~~~~~~~~~~~~~~~2 gr6- fté,fi gsO4à10m. Urae M -*U tt u I.04.14.401i à3u 0.1t.ê àsesuUa.. 2 SIC «Fl

UigIgiai 25.16.1000 AI 1.1 iBISA lies Uses 1 LIC~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~MAm m ic go14 t eaesfgeîus.e .m1 0.21 . îîee liseu 2,1.4.30021.~06.A20 lAI 0.4 1 S ie < 35.14.3100 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~o 3~~~~~~~~.4a aus îo Mes. 001 Flnc 3104111113 M.I 0. l J5124 Iras 47 LO*Se lie. I14 LICE .-foc-a"'Ia' Fr~~~~~~~~~~~~~~~~.51 __Ues ssi C- 5.4.1 .431 100.0 a. e.. p O.A-R~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ î~~~~eoî ula.î0à e 4 O" 06 Io& 40 et~~~~~~~~~~~~~~~~~~~~~~~~~~~~lg Urge 21.2006 0.

Leaiesis late 1143. 2.1103 lisais per 15$.190Wleteisalse4l UegaeAeASleileAce A5*u 3AwaiIgiI riglé ls. lsieesî.ucide".a,4est iAaSigauis fiouelsh..viauatLga ereus

119. Imports of wrought nickel products in 1982 amounted to.US$12.4 million, and about 81 per cent of this comes duty-free fromthe EEC, EFTA and Spain. The rest come mainly from the United States and Japan. Bound import duties on wrought products range from 0.4 per cent to 2.7 per cent. The simple average duty is 1.0 per cent and the weighted average is 0.6 per cent. Bound duties on finished nickel manufactures range from 0.2 per cent to 2.9 per cent. However, most imports are duty-free since they come from Spain and EEC sources. Dutiable imports come mainly from Japan and the United States. There are also small imports from Hong Kong and Singapore which are admitted duty-free. The simple average duty on finished manufactures is 1.2 per cent and the weighted average is 0.5 per cent. Imports of nickel chemical products are subj ect to bound duties ranging from 0.1 to 1.0 per cent. However, about 87 per cent of imports come duty-free from the EEC and EFTA sources and from Spain, while dutiable imports come mainly from Japan, United States, Canada, Poland and the Democratic Republic of Germany. Switzerland gives duty-free treatment to all nickel imports coming from countries eligible for the GSP. However, these sources accounted for only 1 per cent of all imports of nickel products. 120. Sweden is one of the major importers of nickel products. Total imports in 1982 amounted to US$120.3 million, 89.5 per cent of which was accounted for by unwrought nickel products, 4.4 per cent by wrought nickel products, 4.9 per cent by nickel chemicals and 1.2 per cent by finished manufactures. 121. Table 29 shows that about 94.3 per cent of total nickel imports enjoyed bound zero m.f.n. duties. Sweden is a member of EFTA and a further 3.3 per cent of imports had a duty-free entry on the basis of preferential treatment being imports from other EFTA countries, the EEC and Spain. Only 2.4 per cent of imports were subject to m.f.n. duties ranging from 1.4 per cent to 5.8 per cent. All dutiable imports from GSP sources enjoy duty-free treatment. Imports of unwrought nickel were all duty-free on an m.f.n. basis. Imports of matte come from Australia and the USSR; those of ferro-nickel come from New Caledonia, and Dominican Republic and Indonesia, while imports of unwrought refined nickel come mainly from the United States, EEC and Canada. Imports of wrought nickel are subject to a bound m.f.n. duty of 1.4 per cent. However, about 50 per cent of wrought nickel imports core from duty-free EEC and EFTA sources. 122. Dutiable imports come mainly from the United States, Japan, Canada, Hungary and the USSR. Imports of nickel chemical products are duty-free on a bound m.f.n. basis with the exception of nickel nitrites falling under CCCN 28.39 which are subject to a bound m.f.n. duty of 5.8 per cent and ceiling binding. Imports of chemicals come from the United States, EEC, EFTA, USSR and the German Democratic Republic. Imports of finished nickel manufactures are subject to bound m.f.n. duties of 3.2 per cent. However, almost all imports come from duty-free preferential sources, namely, the EEC, Switzerland and Spain. 123. With only a small domestic mine production of nickel, the United States imports most of its nickel needs making it the largest single country importer of nickel products. On the other hand the United States has a large nickel refining and fabrication capacity. Imports range from intermediate products, such as matte and nickel oxides, to finished products. Table 30 shows that in 1983 total imports of nickel products 'nw --_ uÔ Table 29

Imports of Nicket and Nickel Products under DifferentTariff Treatment Accaoding to Stages of Processing

Total .%b I | Cher Ptereiil tfl.¶lC ~~~~~~~~~~~~~leçons Duty Feeu Duc1ible |tT.l t tarUf ~b. huifthru M..d XVId Rat. Value 2 0 VVRa V 2 0 te Valu 2 origin Race Valu j -trigi lAe4her simple Vabl VahY 12 r-d &aInd I 2 3 4 5 6 7 8 9 10 Il 12 13 14 15 16 17 18 19 2D 21 22 23 aed 26.01.3000 - _

- 0-_ 10.t 75.01.1000 14,112 14,112 Mn",S1 lOui.ed '5.01.20W 60.146 60.146 USIEZICAN W&SCO wd icrap '5.01.6010 1,535 1.535 ED.Um.iBa, ,5.01.6020 7,9)9 7,809 E C,lWA,Sg l'rrt-luckal 3.02.9020 15.747 15,747 :,ix11.1f|I id flâk 75.03.3000 5.641 5.647 5 6lW AMB Electro-latlz 75.u5.0000 50 FM1NE:,c 5.b-cocal lû7,144 00.0 107,744 1(O.0 o4pc 15 5.02.00 !SS 1.4 113_1< Fm - Fi| 27 .02.0020 1.630 1.4 379 tu F1 E ,E 1 5.03.2010 418 1.4 - Frre - Fre S78 E1LOE 0;3.2020 2,531992 1.4 1,958 UiA4JM Froe - Froe 641 | H.Fw.a(E ! 04.0000 i11 1.4 41 GAN4~.M ftw Fiee 276 EeHXQE.FIN 13100001 - - FIN &rG 1.4 26N 'O. | 5,279 00.0 1.4 1.4 - 1.4 2.606 49.4 Fiu | l 2,b73 10-o hmaicail- i c.5 28.090 2.713 2,713 EOAUs,3m. i cc.3.10.9090 ;81 783 WEUSA.IZ, I 9 38.10 ta180 180 lE.SM c "38.9m) 843 843 El:,aJT3,i 233 S.S, 2.33 EEC.43.0u .bx_4.2.9<» 453 453 AIECL.te_~~~.XJ.S.M280a 23 623 | El:,FmN | 5t-coCa1 5,880 Q0,0 0.7 5,647 96.0 5.8 233 4.0 _i __ i 5.06.00 1"356 3.2 14 Free - Fra 1 342.lE.UjS7 i&is:wures 1 :iSwciibl trid :lu intorEcim Uwder cnIs iar doe me disattauh benwm du pre.â ln ItlIu,aat mi ronW ftom. Trrde flou ft4gs 1ue baem lnchaled uiler umauqhe nicdkl. -,m th. u.ei a lpraâ a are, -c .eijufW seperasy (uitcated by "ee' in frat af tcaifthé maL.0the tmode flt i 4ues ey md. importa of dch8cal pcohu ottur thm ithoe .'i mudl. ;Lc wi acan taiIn the rriv ci teiddle pamà.s no ullicd riff mwmaa ha. beu cSa"aeel In rcep ai cesa pnrcs&. ! eilia UaltaciLm. hbilldu in reçc Mnltritesai oely (i.e. "eddes nitrtam). Ibau dCty-free tariff react ,çpl.ee to nitrates. .7ppLaI rate for thed tra tariff Une ta tern aà t&.là race hs boa for the cal-'-lLm .i the uM aveaupa. ,tuff ra'ge. Table 30 jfflî 1613 s4m Imports of Nickel and Nickel Products under Different tariffTreatment According to Stages of Processing

TotaI Other prefasential Treatment Imports Duty Free Qutiable (duty feee) Value OrigiaValue Origin Date Valu Origia Rate Volue Origia

à 4. 4 i I I le Il la 13 14. as 14 si 1l te la si la la *4. 5~~01.34 aheuSsaléasa 6.1601. -US, CANMA.AusCAM

alla 4~~~~~~01.4V8 66,au4 a*IasUS, CANlAmca sakyé6*0.01 41.31îSI 41.31,CAN, MUR, AUSs caaa aîp 410.04. 1p 91, 11,463 CAN, EEC, 'ii-etàa nickel1 60,561 54,4%4 laIsDOH,NCL osierscal 5and . 624.0 4.36 134 EVUr cuEE 510.31 611326 451,30 AWV. Su-tss b-Total10o.a 544,411 100.0

613.40 à -6 & uc Visar Ji34. 3,1 61 î gccaj ia2 LAVs 51.5 53 .3 ilK,1UCMVa. 3 i 513.63 4.06 Visa 613.1 36 .3:1k ruVUFreee Vude 433 .1 I514 UCCI,1.et.ia 4 UAirr 413.50 1i 3-à 61 ~ 161U,5£,BVia 3 pcé,VFis 511.06 M6 .1531 44*e1 Freerd u la 312.06 4.*45 à i-te 34.11 31.1 .64 ,411uccSMjfusc aBjeuEEC,CAN,CMEIIVrude a Visa 20.34 511 a si ScC>IJUEEC, AUS N, isa 530.33 11,61 .t131 MIUCUVsaEECCAN, JPN .Ve 513 0. 4431 3. 11LcsUcu lis Free Vsa M2.4. 4,16 .0 414£cJtu.is EEC, SWE, CAN rudea 530.4 1432.4 16 CAMUi îsEEC,SWR ubil 4,5 0.0 44 54 54 443,11461.1 ias JI3 3. Vsa I ~~a.Icala41~~6.30. .1V 1. 4.1V EEC, JPN,SWK 4.63 aî ucVeusa Vîs 4.6.14. s1,0 SA CANAUUm5cm EEC, JPN 1o,13 >KV: , li CAN, Vs 4.16.5 13:4.3 3. a14.i uc.JVUCAM visa si -11.Vies 61,6lo l isub-Total .4 341,03 1. 3-.1: 3,11 1.M1i Via Free Visa du.04 11, - .1 11ICCIMVe33 III Vimudeese a4403.6V î,eî6a 1,134.1' iCJEC Visa 16 i1VS Vs s6SîlVé 134 1.1 6 J115,Ccm sin EEC, JPNCAN Vs

1,113ss6S6.11 4~~~~~~~~54 .5-.6 41.Y4 IIC*E9 ,II Vis losSSCflI,4aVis *s431.10 3,431 1.5 3,463 LKCJ16,CAI CAN,-~~~~~~~~.1CAUFree1JPNVies 1 t.erud

sSehlolal il,431 100.0 4..4 19.I50.li. 1,343 14.1 rude 1.1Vi.V 6. loca 63 5 0 4,36 6. ..00 5350 1 eia 1n4. ia . a.. ..u alassessss s5r5îc5îîî5aiîs z O

On-- flowrade infArmationdoes not btut between and a oalgdistingwish ash residuceandunwrought c 5%p îS.J .. à.s ..s for eachandresiduce unwrought but ht, nickelfor

4 W. t h . asparately finanufactures are not secified e "ex" front tariff numer) tradeflow figuremanufacturesa 1i lCIa Chother thanthoseof nickel.Since this occure the sajority . weighted aerage b in manufactures has ba these products.. p ia. MDF/W/21 Page 84

amounted to US$723.8 million about 89.6 per cent of which was accounted for by unwrought nickel products. Wrought products accounted for a further 6 per cent; finished manufactures 1.4 per cent while nickel chemicals accounted for the remaining 3 per cent. The Table also shows that about 92.2 per cent of total imports enjoyed bound m.f.n. zero duties, 7.3 per cent of imports were subject to bound m.f.n. duties ranging from 2.5 to 10.0 per cent, and although all dutiable imports enjoy a duty-free GSP treatment, only 0.5 per cent of imports fall under this category. 124. Imports of all unwrought nickel products are duty-free. On the other hand, wrought products, chemicals and finished manufactures are subject to duties. Imports of matte accounted for about 11.2 per cent of total United States nickel imports and come mainly from Botswana, Australia and Canada. Imports of unwrought refined nickel and nickel alloys accounted for 58.5 per cent of total nickel imports and come mainly from Canada, Australia, Zimbabwe, USSR, Finland and the EEC. Ferro-nickel imports accounted for 8.4 per cent of total nickel import and had New Caledonia, Dominican Republic, and Colombia as the main sources of imports. The United States is a major importer of nickel waste and scrap and in 1983 they accounted for 2.4 per cent of total nickel imports with Canada, Norway and the EEC as the main suppliers. 125. About 98 per cent of wrought nickel imports are subject to bound m.f.a. duties varying from 2.5 per cent to 7.4 per cent, the simple average duty being 5.4 per cent and the weighted average 4.6 per cent. The largest wrought nickel import items were nickel rods and wire, cold worked, subject to a bound duty of 4.7 per cent. Imports of wrought nickel products come mainly from the EEC, Canada, Japan and Sweden. All dutiable imports enjoyed duty-free GSP treatment with the main supplier being Brazil, Mexico, Republic of Korea, Philippines and Zimbabwe. Roughly 87.4 per cent of United States imports of nickel chemicals consisted of nickel oxides and hydrooxides which enjoy bound duty-free access. Imports come mainly from Canada, Australia and Norway. The other major chemical import items were sulphates and persulphates (ex 28.38) which are subject to a bound m.f.n. duty of 3.2 per cent with the EEC, Finland and Canada as the main sources of supply. Imports of chlorides and oxychlorides of nickel (ex 28.30) come from the EEC and Japan and are subject to a bound m.f.n. duty of 3.7 per cent. The remaining nickel chemical imports were subject to a bound m.f.n. duty of 3.7 per cent and come mainly from Canada, Japan and the EEC. Imports of nickel chemicals enjoy duty-free GSP treatment. About 74.7 per cent of United States imports of finished nickel manufactures are subject te bound m.f.n. duties ranging from 4.7 per cent te 10.0 per cent with a simple average of 6.6 per cent and a weighted average of 6.4 per cent. The remaining 25.3 per cent of imports of finished nickel manufactures are from duty-free GSP suppliers. Dutiable imports come mainly from the EEC, Canada and Japan while GSP supplier are mainly Israel, Hong Kong, Mexico and the Republic of Korea. (ii) Developing countries 126. Tables 31 to 41 provide information on imports of nickel and nickel products divided according to stages of processing for the following developing countries: Argentina, Brazil, Hong Kong, India, the Republic of Korea, Malaysia, the Philippines, Spain, Thailand, Turkey and Yugoslavia. Trade figures are based on national statistics. Imports under CCCN ex26.03 are not included in total nickel trade. Tables indicate the most recent m.f.a. tariff treatment and where available, preferential treatments MDF/W/21 Page 85 granted to other countries or regional groupings. In examining these Tables it can be noted that m.f.a. nominal rates of duty on nickel increase with a higher degree of processing. la principle, lower m.f.n. rates are applied to imports of primary nickel while nickel semi-manufactures and manufactures are subject to higher rates of duty. However, it should be borne in mind that the protective role of developing country tariffs cannot always be disassociated from their fiscal function. 127. Argentina is a net importer of nickel products. On the basis of 1981 trade information, import amounted to roughly US$7.0 million, 47.8 per cent of which was in the form of unwrought products, 27.6 per cent in the form of wrought products and 22.5 per cent in the form of nickel chemicals. Imports of nickel manufactures were very small. On the basis of 1984-85 tariff treatment the m.f.n. duties on unwrought nickel range between 10 and 38 per cent. Imports come from the United States, Canada, Norway and the EEC. Imports of wrought nickel products into Argentina come mostly from the EEC, United States, Sweden and Switzerland and are subject to duties varying from 10 to 38 per cent. Small amounts of imports come from Brazil under preferential tariff rates. Import duties on nickel chemicals vary -between 10 and 35 per cent. Imports came mainly from, the EEC, United States and Switzerland, while a small amount comes from Chile on a preferential tariff basis. The simple average duty on imported finished manufactures of nickel is 38 per cent. M.f.a. imports come mostly from the EEC, United States and Japan, while a small amount of imports under preferential duties comes from Brazil and Mexico. 128. Brazil is both an importer and exporter of nickel products, Table 32 shows that total imports of nickel products amounted to US$6.4 million in 1983 of which, 23.0 per cent were in the form of unwrought nickel products and 43.0 per cent in the form of wrought nickel products. Imports of nickel chemicals including other products under the same tariff lines accounted for 32.5 per cent of total nickel imports. Imports of finished nickel manufactures were very small, and amounted to only 1.5 per cent of total nickel imports. 129. Imports of ores and concentrates, as well as imports of nickel ash and residues, have duty-free access into Brazil. The rest of nickel imports are subject to duty varying between 10 and 55 per cent. Duties on unwrought nickel products vary from 10 to 45 per cent and imports come mainly from the United States, EEC, Canada, Norway and Switzerland, while duties on wrought nickel imports vary from 15 to 45 per cent, with the EEC, United States, Japan and Switzerland as the main sources of imports. Imports of nickel chemicals come mostly from the United States, Canada, EEC and Switzerland and are subject to duties of 15 and 30 per cent. Small amounts of imports come from ALADI sources. The simple average duty on imports of finished nickel is 55 per cent and imports come mainly from the United States, EEC, Japan and Canada. 130. Since 1982 Colombia has been exporting a substantial amount of ferro-nickel. However, it also imports some nickel products which in 1981 amounted to about US$4.8 million made up mostly of unwrought nickel products (45.8 per cent), wrought nickel products (22.3 per cent), nickel chemical products (29.2 per cent) and finished nickel products (2.7 per cent). All imports of ores and concentrates as weil as of nickel ash and residues are subject to a 10 per cent duty. Matte and speiss, on the other hand, are subject to a duty of 5 per cent. Imports of unwrought nickel and COUNTRY: Argentina Table 31 TEAR: 1981 (trade). 1984-85 (tariff treatment) Import of Nickel and Nickel Products under Different Stages of Tariff Treatment According to Stages of Processing (ln US$'000)

HFN 3 Product Tariff Total Tariff Average MFN Other Preferences1 e C Description No Imports Simple Weighted% Rate Value Origin Rata Value Or gin Ores and concentrates 26.01 12% _ Ash and residues 26.03 302 _ 16 URT Sub-Total 16 21 122-30%2 - 16 Unwrought Matte and speiss 75.01.01.00.00 - USA _ Alloyed 75.01.03.00.00 10% 2,993 USA,EEC,NOR,CAN _ Waste and scrap 75.01.02.00.00 _ Ferro-nickel 73.02.03.09.00 i6Z3 _ Powders and flakes 75.03.00.00.02 237 EEC, USA.CAN _ USA.EEC Electro-plating anodes 75.03.00.02.994,75.05 38s102 loi13 USA,EEC Sub-Total 3,344 27.7 11.1 10_z38z2 3,344 Wrought 10% 699 142 138 EEC,USA,CHE,SWEEEC,USA,CHE,SWE SRA 35) 8} 1815 ~~31.13 EES,CAN-USA.EEC CHE 75.03.00.01.99 ,U 382 218 EECUSA 75.04 , ,CC 10x 504 EEC.USA.CHE _ 75.054 E 10-5 _ USA.EC Sub-Total 1,927 15.1 13.6 IOZ38Z2 1,907 . 20 wemicals6 28.28 IOZ llO USA.EEC 28.30.00.01.11 25I 24 EEC _ H 75 COL 28.30.00.02899aX28. 30 102353 - EEC I_ , , 252 28.e35.00.9900ex28. 38 352 1,281- USAEECEECUSAPOL,CSR,AUT ex28. 39 CHE 25S 3 EEC USA auE _ 28.42.02.13.00 ex28.43 102 34 USA EEC ex28.48 , E ,CHE 32 USAEECCIe _ Sub-Total 1,576 17.5 10Z3522 1,559 Il Finished manufacturers 75.06 ,U , W,JPN 382 113 EECUSAPT 12 SRA.HEX Sub-Total 125 38 38 382 113 12

Total 6,988 = 10_382 6,923 65 Imorts trou isADI countries are indictoed In these columns, although no information la available in relation Co the nature of extent or any preferences applied. The veighted tariff averages are calculated excluding this trade. 2Tarif f range 3Thesbound rate on item 75.03.00.02.01 (Pouders end Flakes of pure nickel) ie 40 per cent. Tariff average have been calculated using applIed rates. 4Avalable trade flou information does not distringuiah between unwrought and wrought electro-plating anodes. This item has been includedwIn the calculation et the siwple tariff average for both unvrought and brought nickel but only in unvrought nickel for the trade weighted tariff average. 5The bound rate on tlu1 Item L1 30 per cent. Tariaf av$r00es have been calculated using applied rates. (-) nil or less thon USS5ûO. 6Where the nickel chemical products are not specified separately (indtcatcd by "ex" in front of the tarif( number) the trade flo figures May include Importe of chemical products other than thosse ow nickel. Since this occurs in the majority of the chemical product nov weighted tarif( average has been calculated in respect of these products. (B) Sound rate (Schedule 1XIV) - Argentina). Source: Couerclo Exterior 1981 Importaclôn Vol. III I and 2, Institisto Nacional de Estadistica y Censoa, 1981. international Cuatous Journal, Argentins 1984-85. Brussei. 1984. COUNTRY: Brazil Table 32 YEAR: 1983 (trade). 1985 (tariff treatment) Imports of Nickel and Nickel Products under Different Stages of Tariff Treatment According. to Stages of Processing ______A(in US$'000) HFN Product MFN Tariff Total Tarif( Average HN Other Preferences Des%ription No Importe Smple IlWeIgh ed Z Rate Value Origin Rate Value Origin Orea and coreentrates 2HE01 )_F CII Ash and reaidues 26.03 Sub-Total Free _ Unvrought tatte and apeise 75.01 151, Unalloyed 75.,01 , 10o(A5 1,039 USANORCAN,EEC,CHE Alloyed 75.,01 ) 15 2 USAEEC Wanted and *crap E5C01 ) - £Er Ferro-nickel 73.02.07.00 371 7 USA,EEC Pouders and flakes 7E.03.02.01 451 - CEC 75.0320E.29 )lS 228 USACAN,CEC Electro-plating anode 75F05 ) 174 ZAPEEC.CHE Sub-Total 1.416 11.1 11.6 IOI-45S 1,476 Wrought 75.02 452 736 CHEEEC.USA,ESPJPH 75.03 202g 708 EECCHEUSA,JPN 15.04 301 741 USA,EEC.CAN 75.04202.00 37Z 573 EECUSA 75.,05 H 152 - ZAFEEC,CE Sub-Total 2.758 29.2 32.9 15l-4523 2.758 _ Chemicaia4 ex2a.28AN,EEC ) 573 USA,CMEEC ex28 30 301> 268 EEC.CHE,CHN 5 ARC ex28.35 ) Il EECUSA 28.38. 16.00 G,MEX 15S(B) 1,161 EECCHEUSA 49 ARGHU ex28. 38 ex28. 39 I CHEUSAEEC 28.42 1 302 l CHEEEC ex28.43 I EEC.USA,CHE ex28.48 16 EECUSA Sub-Total 2,086 29.6 1S2-302 2,032 54 Finluhed manufactures 75.06 Is2 95 USA,EEC,JPN,CAN Sub-Total 95 55.0 55.0 552 95 Total 6.415 _ Free-5523 6,361 54 ; Importe irom ALADI cisntries are indicated ln these coliamna although no Information te available In relation ta the nature or extent of any preferences applied. The weighted tariff average are calculated excluding this trade. U3 C7 2Available twade flou Information does not diatingulal between unwrought and brought electro-plating anodes. This Item has been Included in _n the caughlation of the simple tarifE average for both unwrought and wrosigt nickel but only In unwrought nickel for the trade weighted tariff average. __ 3Triff range. INJ-_ 4'Wiere the nickel chemifalmproducts areinot specified separatelyw tndicatcd by "ex" in iront of the tartff number) the trAde floau figures moy Incimde Importa of chemical products nther than those of nickel. Since this fccurs in the majority of the chemical product no weighted tarif average haa b'en calculted in respect of theme prodica. (B) Eound rate (Schedule Mt - Ozazil). (-) Nll or leas than US$500.

Snairren MCoercin Exterlrr dn Braaul. lmpnrtacao 1983. TiamnI and Il. Hinisterio da Fazenda. Secretaria da Receita Federal. Brasilla 1983. Tii-L[Tiduane1r:t do Srtail. Rio de Jantilo 1985. COUNTRY: Colombia. Rep. of Table 13 YEAR: 1981 (trade). 1982-83 (tariff treatment) Imports of Nickel and Nickel Products under Different Stages of Tariff Treatment According to Stages of Processing

MFN product Tariff Total Tariff Average MFN Other Prefurencest u 3 Description No Importe Simple% % weighted Rate Value Origin Rate Value Orion CDno Cc Ores and concentrates 26.01.03.00 102 _ 00 -g Ash and residues ex26.03 0w ri * " Sub-Total _ lO 102 _ Unwrought Natte and speisa 75.01.01.00 5 1 n.a. Unalloyed 75.01.02.00 Alloyed 75.01.02.00 102 1,846 CANUSA,EEC Waste and scrap 75.01.03.00 52 40 n.a. Ferro-nickel 73.02.00.09 10% _ Powders and flakes 75.03202.00 151 22 Electro-plating anodes 75.05 280 na. Sub-Total 2.189 10 10.6 52-1513 2.189 Brought 75.02 15Z 546 EEC.USACUI 28 RRA 15.03.01.00 152 74 n.s. 75.042 302 417 USA.CAN.EEC 75.05 152 _ Sub-Total 1.065 22.5 21.0 152-3023 1.037 28 Chemicals3 ex28.28 488 EEC,CANUSACHE ex28.30 231 n.a. ex28.35 126 n.a. ex28.38 202 170 n.a. ex28.39 148 U.a. ex28.42 87 n.a. ex28.43.01.99 84 n.a. ex28.43 252 I n.a. ex28.48 *252 58 a.a. ex28.48.05.99 152 - n.a. Sub-Total 1.393 20,7 151-Z523 1.393 Finished manufactures 75.06 30X 127 n.a. Sub-Total 127 30 30 30X 127 Total 4,774 52-302 4.746 2d

'Imports from ALADI are countries indicated in these columns although no information is available in relation to the nature or extent of any preferences applied. The weighted tariff averages are calculated excluding this trede. 2Available trade flow Information does not distinguish between unwrought and wrought electro-plating anodes. This item has been included In the calculation of the simple tariff average for both unwrought and wrought nickel but only in unwrought nickel for the trade-weighted tariff averp3a. 3Tariff range. 4Where the nickel chemical producta are not specified separately (indicated by "ex" in front of the tariff number) the trade flow figures may include imports of chemical products other than those of nickel. Since this occurs in the majority of the chemical products no weighted tariff average has been calculated In respect of these products. (S) Bound rate (Schedule LXXVI - Colombia). (-) Nil or les. thon US$500. n.a. when CIF calue lesn than US$400.000 origin net available.

Sources: - Anuario de Comercio Extertor 1981 Departamento Adainistrativo Nactonal de Estadistica. - international Customs Journal. Colombia 1982-83, Brussels, 1982. 22sag S~ ,- ---°s^- .-E<2-2'98 * -é°i!;fidÉ] * 8. : '- ____ ~ ~ o ~~~~~~°°-- * °-, ______-« S l> 1

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MDF/W/ 21 Page 89

nickel alloys are mostly imported from Canada, United States, and EEC, and are subject to a 10 per cent import duty. Wrought nickel imports come mainly from the EEC, United States, Canada and Switzerland and are subject to duties varying from 15 to 30 per cent. Nickel oxides and peroxides from Canada, EEC, United States and Switzerland make up a great part of nickel chemical imports most of which are subject to a duty of 20 per cent. The simple average duty for this sector is 30.7 per cent while nominal duties range from 15 to 25 per cent. The nominal and simple average duty on imports of finished nickel manufactures is 30 per cent. 131. Bong Kong is a substantial net importer of nickel products. Imports in 1983 as indicated in Table 34 amounted to US$35.1 million, about 75.0 per cent of which vas acounted for by unwrought nickel products, 12.2 per cent by brought products and a further '2.7 per cent by nickel chemical products. Imports of all nickel products into Hong Kong are duty-free on au m.f.a. basis. Imports of ash and residues come from Japan, Singapore, Philippines and China. The bulk of nickel imports are in the form of unwrought unalloyed nickel from Canada, Norway, EEC, Australia and the Republic of South Africa. Unwrought alloyed nickel comes from Canada, United States, and Japan, and ferro-nickel imports côme from the EEC, Brazil, Republic of South Africa and Australia. Imports of wrought nickel products come mainly from Japan, EEC, United States, Canada, Australia and Norway. The main nickel chemical imports into Hong Kong are nickel oxides and hydroxides (28.28) and sulphates and persulphates of nickel (28.38) which together accounted for over 67 per cent of nickel chemical imports. Imports of chemicals come mainly from Canada, EEC, China, United States and Japan. 132. India is one of the major importer of nickel products among developing countries with total import in 1980-81 amounting to US$49.9 million. Import range from ores and concentrates to finished manufactures* and are subject to m.f.n. duties ranging from 40 to 100 per cent. Unwrought nickel products accounted for 62.1 per cent of total imports. Wrought nickel products accounted for 20.6 per cent and chemical imports accounted for a further 16.6 per cent. Imports of finished nickel manufactures amounted to only 0.2 per cent of total nickel imports. 133. Imports of ores and concentrates come from the EEC and Canada, and imports of ash and residues came from Australia, Canada and Singapore. The nominal duty on ores and concentrates is 60 per cent and that on ash and residues is 40 per cent. Imports of unwrought nickel products come from the EEC, Canada, United States, Australia, USSR and the Philippines. They are subject to a duty of 40 per cent with the exception of nickel powders, flakes and electroplating anodes which are subject to a duty of 60 per cent. The simple average duty on unwrought products is 45 per cent and the weighted average is 42 per cent. The simple average duty on wrought products is 68 per cent, while the weighted average duty is 67.6 per cent and the nominal rates are 60 per cent and 100 per cent. Imports of nickel chemicals are subject to a nominal and simple average duty of 60 per cent and the bulk of imports are in the form of nickel oxides and hydroxides which come from the EEC, United States, Australia and Canada. The other major chemical imports are nickel chlorides and oxychlorides which come mainly from Japan, EEC, United States, Singapore and the Republic of Chine. Small imports of other nickel chemicals come from Hong Kong, Japan, EEC, United States, Norway, USSR and the Republic of China. COUNTRY: Hong-Kong Table 34 YEAR: 1983 (trade), 1984 (tariff treatment) Imports of Nickel and Nickel Products under Different Stages of Tariff Treatment According to Stages of Processing (In US$'000) MFN Product Tarif f Total Tariff Average HFN Other Preferences Description No Importe Simple Weighted Rate Value Origin Rate Value Origin

Ores and concentrates 26.01 ) Ash and residues ex26.03 (893) JPN,CHN.PHL.SGP Sub-Total - Unwrought Matte and speise 75.01 Unalloyed 75.01 ) J 24,641 CAN,NOR.EECAUSZAF Alloyed 75.01 ) 247 CANUSAJPN Waste and scrap 75.01 ) Free PTW Ferro-nickel ex73.02 ) 1.159 EEC,ZAF,SRAPTW,AUS Powders and flakes 75.03 ) Electro-plating anodes 75.05 ) 253 NORJPN.USA,CAN Sub-Total 26,301 26,301 Brought 75.02 11,665 JFN.EECUSA.AUS 75.03 )Free 2.610 NOR,CAN,JPN,EEC,CHE 75.041 )Free 7 EECJPNAUS 75.05 ) NOR,JPNUSA,CAN Sub-Total 4,282 4.282 chemicals2 28.28 ) 1,158 CAN,CIWI,EEC 28.30 ) I 463 EEC,JPN,CHNUSA ex28. 30 ) I 37 JPNUSA, ISR.CHNEEC ex28. 35 ) 118 CHN,KOR,EEC.JPN 28.38 ) Free 1,403 EEC,PTW,FIN,CHN,JPN ex2a.39 ) 243 CHN.EEC,USA ex28.42 ) 670 CIIN,EECJPNSUN ex28.43 ) 342 EECJPN,USAESP,CHN *x28.48 ) 31 EECJPNUSA Sub-Total 4,465 4,465 Finished manufactures 75.06 Free 41 EEC,JPN Sub-TotaI 41 41

Total 35,089 Free 35,089 lu 3 Available trade flowv information does not distinguish between unwrought and wrought electro-plating anodes. This item has been included ln the calculation of the simple tariff average for both unwrought and wrought nickel but only in unwrought nickel for the trade-weighted tariff average. -0h 2Where the nickel chemical products are not specified separately (indicated by "ex" in front of the tariff number) the trade flow figures chemical no tariff %0 _K Ray include imported of chemical products other than those of nickel. Since this occurs In the majority of the products. weighted O ru average has been calculated in respect of these products. (8) Bound rates (Schedule XIX - Hong Kong). (-) Nil or less than US$500.

Sources: - Hong gong Trade Statistics, Imports, Census and Statistics Department. Hong Kong 1983. - ZoIl-und-Handels Information, Hong-Kong, 1984 Exchange Rate 1983: 7.273 Hong Kong dol lare per US$, Hong Kong Monthly Digest of Statistics. March 1984. CMINTRYs I ndie Table 35 YEAR: 1980-81 (trade), 1983-84 (tariff treatment)

Import of Nickel and Nickel Products under Different Stages of Tariff Treatuent According to Stages of Processing (in US$'000) H~~~~~FU Product f Tari(f veragal Tariff AlvvMre HFN Other Preferances Description N s m Ho % Weighted% SiplepiX Rete rigin Velu Ovglt Ratue igin -vtvalue Ortign Ores and concentrate 26.01 6021 190 EEC.CAN Ash and residues ex26.03 402 (2,748) AUS,KEN,CANR50P Sub-Total 190 50 41.3 401-601 190 Unwrought Hatte and *pease 75.01 ) E 1,113 REC Unelloyed 15.01 ) E , N R,149 ZECBSUUCANNORUSA Alloyed 75.01 ) 401 E 2.H55 CARCEC.USAPHL,IXC MAute and acrap 75.01 ) W 2,987 EEC.USASVEAUS Ferro-nickel 73.02 ) E B 3,117 REC,SCPIRA Powdera and flakea 75 032 ) 60 2,164 AUSCANUSAEECClig Electro-plating anodes 75.053 EEC,CAN 909 RCCAN Sub-Tot4l 31.044 45.7 42 40Z-602 31,044 Wrought 75.02 60X 3,8P0 WE EEC.NOR.PHL.JFNSgg 75.02 1002 2,140 E REC,USACAN,JPN,SVI 75.03 ) N ,3,N81 EECCAMHUNiJPHUSA 75.04 602 W82H ERCJPN.USASUECUE 750522 )- N EEC,CAI Sub-Total 10,305 68 68.3 601-1002î 10,305 Chemical3 ex28.28 ) H 5,839 EECUSA.CIE.AUS,CAN ex28.30 ) 1,37H JPNEECUSA,SGPC1N ex28.35 ) 56 EEC,USA,JPN ex28.38 ) P ,H H05 R J1N,EECJIKGCINNOq ex28.39 ) 602 G N 1N9 N EEC,HKO,CAISUW,JPl ex28.42 ) 109 EEC,USASUN ex28.43 ) 156 REC,JPN,CHN,USA *x2B.48 ) 137 JPN,EEC Sub-Total 8,298 60 602 8.298 Flinlshed manufactures 75.06 115 EEC lIS ZeC,USASWE.JPN Sub-Total 115 60 60 602 115 Total 49,952 402-1002 49,952

Tariff range. 2wvalîAbme trade floa Infor.ationsdoes not distinguiAh between unwrought and wrought electro-slating asodee. Thit itemihau bean included ln the calculation of the simple tariff average for woou unwrought and vrnigit niwkel but anly tn unvrought niwkel for the trade-'eighted tariff average. 3Where the nickel chemical products are not specified separa"ely (indicated by 'ex" ln front of the tariff nowber) the trade flo figure. may include imported of chemicae products other thonithose of nickel.iSlnce mais occurs ln the *enority of the chemical product no weighted tariff average ham been calculated in respect of these products. (8) Soind rate (concessionsaaed being renegotiotad) Sources: - Honthly Statistice of the Foreign Trad11 f India.sVolume [I - Importa. Directorate Central of Coercial Intelligence and Statlntics, Calcuttn, 1981. - InternationaI Cistras Journal.aselsa 1981-84, brustiel 1183. .xchange Rate 1980: 7$863 Fupeces per UaS, IMf Internationul Financial Statiatics, 1984. MDF/W/21 Page 92

134. The Republic of Korea is a net importer of nickel products. Imports in 1983 amounted to US$24.8 million and were subject to duties varying from zero to 30 per cent. Unwrought nickel products accounted for about 56.2 per cent of total nickel imports, wrought products 19.3 per cent, nickel chemicals 19.4 per cent, while finished manufactures accounted for 2.6 per cent. The structure of duties indicates a tendency for rates to rise with degree of processing. Import of ores and concentrates are duty-free, but no imports were recorded in 1983. Import of matte and speiss, as well as of ferro-nickel, are subject to a duty of 5 per cent but imports are insignificant and came from Japan. Imports of unwrought refined nickel and nickel alloys are subject to m.f.n. duties varying from 5 to 20 per cent some of which are unbound. Wrought product are subject to a duty of 20 per cent except anodes which are subject to a temporary duty of 15 per cent. The simple average tariff on unwrought and brought products are 13.9 per cent and 18.6 per cent respectively. Imports of unwrought products come mainly from Canada, United States, Australia, Japan, EEC, Finland and Singapore, while wrought imports come from Japan, United States, EEC, Austria, Sweden, Canada and Norway. Imports of nickel chemical products are subject to duties varying from 20 to 30 per cent, the simple average duty being 26 per cent. Import come mainly from Canada, Japan, EEC and the United States. Imports of finished nickel manufactures are subject to a nominal and a simple average duty of 30 per cent and imports come mainly from Japan, United States, EEC and Singapore. 135. Malaysia has no domestic mine production of nickel and import all its nickel needs. Imports of nickel products by Malaysia amounted to US$12.9 million in 1982, US$7.9 million out of the total was, however, accounted for by chemicals which included products other than nickel chemicals. Unwrought alloyed nickel and ferro-nickel make up the bulk of-imports of unwrought products. Import are generally subject to two main duties, zero and 10 per cent. Import of unwrought nickel products are duty-free with the exception of nickel powders and flakes (45.03) which are subject to a duty of 10 per cent. The main sources of imports of unwrought nickel are Canada, Japan, United States, EEC, Norway and Finland. Imports of wrought products are subject to a duty of 10 per cent with the exception of electroplating anodes which are duty-free and the main sources of imports are Japan, Singapore, United States, EEC and Australia. Import of chemical products are duty-free and come mainly from Japan, EEC, United States, Singapore and the Republic of China. Finished manufactures of nickel are subject to a duty of 10 per cent with imports coming mainly from Japan, United States, EEC, Hong Kong and Switzerland. The simple average tariffs are zero for ores and concentrates, 1.4 per cent for unwrought nickel products,. 7.5 per cent for wrought products and 10 per cent for finished manufactures of nickel. 136. Spain is a net importer of nickel products, with import amounting to US$55.4 million in 1982 and subject to m.f.n. duties ranging from zero to 24.4 per cent. About 83 per cent of total import consists of unwrought nickel products, mostly refined nickel, ferro-nickel, matte and speiss. A further 8.3 pet cent consists.of wrought nickel products, while nickel chemicals and finished nickel manufactures accounted for 5.7 per cent and 1.9 per cent respectively. Import of ores and concentrates and ash and residues are very small. Spain has preferential trade agreements with the EEC and EFTA and as can be seen in Table 38, about 37 per cent of import COUNTRY: Korea, Rap. of Table 36 YEAR: 1983 (trade). 1982-83 (tariff treatment) lmports of nickel and nickel Products under Different Stages or Tariff Treatment According to Stages of Processing (In US$'000) MFU Product Tariff Total Tariff Average MFN_ Other freferences Description1 No Importa Simple Weighted% % Rate Value..Origin Rata Velue Origin Ores and concentrates 26.01 Free - Ash and residute 26.03 202 611 JPN Sub-Total 611 10 20 Free-201 611 Unwrought Matte and spsise 75.01 52 2 JPN Unalloyed 75.01 20I(B) 10,029 CAN.USA.AUSJPHEEC Alloyed 15.01 Waste and scrap 7S.01.0200 202(5>002) 812 CAUFINEECSC.? Ferro-nickel 73.02.0400 52 165 JPN Powders and f lakes 15.03.0300 202(<) 492 AUS.JPEN.USA.EEC Electro-plating anodes îS.02 201(15Z*) 2,435 CANJPN, USAEEC Sub-Total 13,935 13.9 18.4 5Z-20% 13,93S Brought 75.02 20.2,306 JPN USA,EEC,AUT 15.03 2,193 JPN,USA,EEC,SEE 15.03.02.00 75 4. 2%&202(1> 29S USAEECJPN 75.05 .20<(152*) - CANJPN,NOR,SEI Sub-Total 4.794 18.6 20 152-20SI 4,194 Chemicals 28.28.0300 202 212 CANJPN 28.30.0106 ) 212 JPN,EECUSA ex28.30 ) 252 416 JPNEECUSA ea28.35 ) 102 JPN, EEC, SWE,USA 28. 38.0206 ) 821 EEC.JPM, CHN USA ex28.38 ) 302 169 JFN.USA.EEC ex28.42 ) 915 EC.JPNUSABKG ex28.43 ) 252 1,499 JPNEEC ex20.48 ) 411 JPNEECCIDl.USA Sub-Total 4,811 26 20X-1021 4.817 Finished manufactures 75.06 302 641 JPN,USAEEC.SCP Sub-Total 641 30 30 302 641 Total 24,804 Free-301 24.804

Tariff range. 2Avallable trade flow information does net dietinguish between unwrought and wrought electro-plating anodes. This item has been included ln the calculation of the simple tariff average for bath unwrought and wrought nickel but only In unwrought nickel for the trade weighted tariff average. 3Where the nickel chemical product are not specified separately indicatedd by "ex" in front of the tariff number) the trade flow figures may include imports of chemical products other than those of nickel. Since this occurs in the majority of the chemical products no weighted tariff average has been calculated in respect of these product. (>) Round rats (Schedule LX-Korea.Rep. of). éTemporary duty. This rate has been used in the calculation of the tariff average. Sources: Statiatical Yearbook of Foreign Trade 1983, Office of Customs Administration, December 1983. International Customs Journal,. Korea 1982-83, Brusaeia 1982. COUNTRY: Nalaysia Table37 Table 37 Year: 1982 Ivorta et Nickel and Nickel Fgodocts gnseofDifferent Stanes aTariff Treatment Accordint ta States Pracessina (in US$'OO0)

l 3 a) 0 ProductAverage TaMiff Total Tariff eraze HFN Other Preferences O -n Descr%pWion No iImporte Simple X Veighted Ratg Value Orîgin Rate Value Orilin Ore and concentrates 26.0F1r10 Viet 43 EEC,USA 4s tu ah and residuea (ex26.03.900) 10t (2.302) SGPJPOUSAEEC,11D O --% Sub-Total 43 5 9.8 Free-lOI' 43 Unwrought tte and opetas 75.01. 100 l EEC,AUS naloyed 75.01.310 212 CAN.USANOR,FINMEC lloyed 75.01.320 Free 1,369 JPN,USA,EEC,SG?,K0R sate and crap 75.01.200 2 USA Ferro-nickel ex73.02.900 977 AUSUSAEECJPN Paiders and flakes 75 032 I0S - SGF.JPN.HIKC,EC Elactro-plating anodes 75Vos3cFree P 408 EEC,NOR,JPNSG! Sub-Tot4l 2,979 1.4 0.0 Fres-lOI 2,979 brought 75.02 EEC SGP 253 IND.IÙCUSA,AUS,- 75 03 1O0 1,598 SGP.JPN,HIGEEC 75 04 16 JPHSSPUSAAUS 7S o52 Fret - EEC,140ROJPN.ECP Sub-Total 1.867 7.5 10 Free-10 1,867 hemicals4 ex28.28 784 JPN.NCR,UEC,SCPUSA ex28.30.900 G HN 2,630 JPN,SCP,EEC,USA,Chi es28.35.900 HN 96 EEC,JPNCII,USA,AUS ex28. 38.290 PTW 772 JPH,EECUSASUH,FTU ex28e39 E P H Fret 525 USA.SECJFNCIN,CHL ex28.42. 200 W OER 2,321 JPN,EEC,CHN,PTV,DD ex28.43 GP P WE 716 SWF,EECUSA,JtNS1S ex28.48.900 GP 77 EEC,JPN,SO?,USA,AUS Sub-Total 7,921 0.0 Free 7.921 Vlniehed manufactures 75.06 10 119 JIN,USA,EEC,HKG,oeB Sub-Total 119 10 10 10 119 Total 12.929 Free-102 12,929

Tariff range. 2Powders fndmflakesthave not been identified separately trou the olher items under heading 75.03. Trade floae under this tariff heading (and therefore the calculaced weighted tariff average) have been included under wrought nickel, but the simple tariff average calculations for unviought and wrought nickel bath include the tariff rate applied to tariff heeding 75.03. 3Avastthe trade florginformawion dies not dlstinguiah betweeT unwrnghthand brought electro-piating anodes. Ihis item bas been included ln the calculation of thewsimple tariff average for both unwrotght and vrought nicwel but only in unwrought nickel for the trade-veighted tariff average. 4Iiere the nickel chemical product are not apecifind separately (indicated by "ex" In front of the tariff number) the trade flow figures may Include imported of chemicaisproducts ather than those of nickem. Since thia occuwe in the majority of the chauical products no vsighted tariff average han been calculated. (B) îound rets (Schedule LXXIX-Malaysta). (-) Nil or laso than US$500. Sotsces: External Trade 198s, ImporunlaVal.11 1 and 2. Departmont of Statiaties, K.ial Lumpur. tiiBrussels,ual Çustoma Journal Halaytaa 1981-82, liroaannl 1981 srchange Rate l982: 2.3354 Rlnggit per US5, I1F International Financial Stattatice 1984. COUNTRY: Spain TaI la l YEAR: 1982 (trade), 1983-84 tariff trentment) Imported of Nicktel and Nickel Products under Different Stages of Tariff Treatment According to Stages of Processing In Us$'000) Product Toriff Total - e MFN Othter Preferences1 Description No Imports Simple X Weighted 2 Rate Value Origin Rate Value- Origin Ores and 26.01 ) Free |- 61 SUE concentrates 6 Ash and residues 26.03 ) 65 USA 450 EEC,AUT Sub-Total 576 Free 65 5II Unwrought Matte and species 75.01 8,961 CUBAUS.CAHNUSA.ZWE 1 907 EECFIN.NOR Unalloyed 75.01 20, 854 USA CAN ZAF ZWEAUS 5,529 EEC ,OR FINCHE AIloyed 75.01 Free(C) 430 CAN,ZAFUSA 410 EEC, C lk Waste and scrap 75.01 2 USA 58 EEC Ferro-nickel 73.02.51 Free 31,484 DOM, NCL, USA 3.361 EEC.AIJT Powders and flakes 75.03.20 ) 15 AUS.ZAF 840 EEC.Si4EOie Electro-plating anodes 15.05.10 4.5S . USACAN 31 EEC Sub-Total 45.948 0.6 0.0 Free-4.512 33.806 12.142 wrought 75.02.10.1 3.52 - 4 EEC 15.02.10.2 8.5X - 9 CEC 75.02.10.3 55 13 USA 289 EECAUT 15.02.55. 7. Z}i1) 139 USAJPN 662 EEC iEAiUTSWE 75.02.55.2 92$N) 33 USA 1,284 EEC.SUE.AUTCIIE 75.01.11 3..Z 66 EECAUT 75.03.15.1 S. S 132 USA 743 EEC,SWE.CHE 75.01.15.2 1. 51114» 1~~~~~135 ISSA.JPM 352 EECCHE 75.04 5.52 83 USA 33 EEC,AUT 75.04 9h(11) 43 USA 506 EEC 15.04 10.8a n 14 EEC,CHE 75.04 Il.8Xoz , - USA 60 EEC 15.04.20 A 4Z 1H 4 USA 22 EEC,AUT 75.05.80 4.5_ Sub-TotalI 4.626 8.1 7.7 I.5-I.îi.Bî2 582 4,044 Chemicals 28.28.40 10.5X 101 CAN l3 EEC 28.30.55 10.5X 60 SIIN.IISA 220 EEC 28.30.90.9 I2.5X 26 C(:N.USA 241 I;EC 28.30.95 ?1ù) 15 IIlR ISR,JPN,USA 78 EIEC 28 30.98.9 24.4b USA 31 EEC ex28.35 1Ii 244 EECAUT 28.38.(î528 18 65 10<1> 55h SUROl 48686 irECC,FIN,.rncnlgCHE 28. 38.89.9 i,12 _ EEC 28.38.90 20.?12(Il) 7 ISSA 696 EEC ex28.39.5U 19X 8 CIllN.USA 51 FEC 28.42.89 20.0111() I JPN 31 EEl: NnR ex28.42 15 _ ex28.43 21.4 11) - USA 46 EF.CCIiE 28.43.91 21). (8) 80 SUN,CHN 310 EEC 28.48.99 152 25 USA 256 EECAUT Sub-Total 3.191 18.8 10.5x-24:1,22 401 2.190 Finished manufactures 75.06 13.2z(n) 97 JPN.USACSK 961 EECAUT Sub-Total 1,058 13.2 13.2 13.2X 97 961 Total. 55,399 Free-24.4I 14,951 20_148 _ - _3 Under Article XXIV a 25 per cent reduction of the actual m.t.n. duy rate ln grated to Imports origlnating lit FEC and FFTA countries except fort w ctl - nickel and concentrates to rehduction itemshadingores CCCN 75.g1 which 60pear cent are appliesiatnapple.saa 60 percentreduction when originating in an EEC country.inatiing ln EEC country. CD -. einli asteiuainascrap, which granted VISi 2Tariff range. (} 31Ulere tctsnickenot specified separately(Indicated by "ex" in front of tariff number)the trade flowfigures mayteber) tIle trade fito fre. ay U productsother than thoseof nickel.Sincethis occurs in a number of the Chemical products,noweighted tariffaveragea iiidî,I r <.1 0tI rlIt-cnltlucta. tusi eilgliitei Unr iIfl average laeu hecn, calculated for nickel chetical pruduhc (>) ousind rate (Scledule XhV - Slain). (-) tl11 or lena tisnit IISS. Adurcent seccion de Eatadistics, Madrid.lor ti* Epanitn. lilrerulst general AaInn:as. Sarclait dle Etatditicas. liiid. 1984.se Haie 6iaeii I88 îen-îa ett9 lUS i tenr. i tOai i cililit en. 1914. MDF/W/231 Page 96 of nickel products come from sources enjoying preferential duties and the rest from m.f.n. duty sources. 137. About 84 per cent of total nickel imports in 1982 were duty-free. They comprise ores and concentrates, ash and residues, and all unwrought nickel products except electroplating anodes which are subject to an m.f.n. duty of 4.5 per cent. Imports of these products come from various sources; matte and speiss come from Cuba, Australia, Canada, United States, Zimbabwe, EEC, Finland and Norway; unwrought refined nickel and nickel alloys come from the United States, EEC, Canada, Zimbabwe, Australia, Republic of South Africa, Norway, Finland and Switzerland; while imports of ferro-nickel come mainly from the Dominican Republic, New Caledonia, United States, EEC and Austria. The rest of nickel imports are subject to bound and unbound duties varying from 2.5 to 24.4 per cent. Wrought nickel products are subject to bound and unbound m.f.n. duties ranging from 3.5 per cent to 13.8 per cent. The simple and weighted average duties being 8.1 per cent and 7.7 per cent respectively. Imports come mainly from the United States, EEC, Japan and EFTA. Imports of nickel chemical products are subject to bound and unbound duties varying between 10.4 and 24.4 per cent with a simple average of 18.8 per cent. Imports of chemical products come from Canada, United States, EEC, EFTA, Japan, USSR, Republic of China, and Israel. Imports of finished nickel manufactures are subject to a bound m.f.n. duty of 13.2 per cent, the simple and weighted average duties also being 13.2 per cent. Imports come from Japan, United States, EEC, Austria and Czechoslovakia. 138. Singapore is a net importer of nickel products. Including chemical products, total imports amounted to about US$38..7 million in 1983 and covered products ranging from ores and concentrates to finished manufactures. Imports of nickel chemical products and other chemicals falling under the same tariff llnes amounted to US$18.7 million in 1983. Table 39 shows that a"l imports of nickel products into Singapore are duty-free on an m.f.n. basis according to 1984-85 tariff treatment. Imports of ore and concentrates come from the Philippines while those of ash and residues come from Japan, Malaysia, Australia and the EEC. Imports of unwrought refined nickel come mainly from New Caledonia, Canada, EEC and Japan while ferro-nickel imports come from Australia, EEC, Japan, Philippines and Mozambique. Imports of wrought nickel products come from the United States, EEC, Japan, Sweden, Australia, Canada and Norway and the sources for the imports of nickel chemicals are mainly Norway, EEC, United States, Japan, Republic of China, Israel, German Democratic Republic and Hong Kong. Imports of finished nickel manufactures come mainly from the EEC, Hong Kong, India, United States and Japan. 139. Thailand imported in 1982 a total of US$8.4 million worth of nickel products, including nickel chemicals. Imports of nickel chemicals together with other chemicals falling under the same tariff heading amounted to US$4.4 million. Import duties on nickel products range from 1 to 50 per cent. Imports of ores and concentrates, ash and residues are very small

1Under thé terms of the preferential trade agreements between Spain and the EEC and between Spain and EFTA and in accordance with Article XXIV of the GATT a 25 per cent reduction of the actual m.f.n. duty rate is granted te imports originating in the EEC and EFTA countries. COUNTRY: Singapore Table 39 Year: 1983 (trade). 1984-85 (tariff treatment) lmports of Nickel and Nickel Products under Different Stages of Tariff Treatment According to Stages of Processing (in US$'000)

Product Teriff Total Tariff Average HFN Other Preferencet Description No Imports Simple X Weighted % Rate Value Origin Rate Value Origin Ores and concentrates 26.01.240 )1,401 PHL Ash and residues ex26.03.900 Free (2.037) JPN,MYS,AUS,EEC Sub-Total 1,401 1,401 Unwrought Matte and speiss 7S.01.900 ) 5 a.&. Unalloyed Alloyed )1.275.01.200 13,921 NCLCANEEWJP?ILCuE.P Waste and scrap 75.01.l00 ) Freo 229 HNTSHL Ferro-Nickel )x7 102 900 ) I,558 AUSIOZeEC.JPNPHL Powdare end flakes e 0325 ) -AUS_ USA2.901 Electro-plating anodes 75.05 147 EECCANJPNUSA Sub-Total 16,460 16,460 Wrought 75.02 3317 USA,EEC,SWEJFN 15.03 ) 446 USA.JPN,EECAUS 74.04$ Frea 62 EEC,JPN

Sub-Total 845 845 Chemicals3 ex28.28 62,030 JNRIC.USA.ipCJ C ex28.30 )4,462 JPNISRUSAECCG ex28.35 121 CHN,EEC ex28.38.900 1.830 FV,EECJpuCIN,IS ex28 39 Free 1.292 EECISRNORCHL, ex28.42.900 7,458 KENEECUSA,DDR,JP ex28.43 I,215 EEC.JPN;USAHKG ex28.48 309 EEC,USAJeNHKG Sub-Total 18,717 18.17 Finished manufactures 75.06 1,290 EECHXG,IND,USA,Ju Sub-Total 1,290 1.290 Total 38,713 Frea 38,113 ~~~~ ¹Powders and Flakes have not been Identifled separately from the other items under heading 75.03. Trade flows under this tariff heading (and therefore the calculated average) have been Included under wrought nickel but the simple tariff average calculations fur unwrought and wrought nickel both Include the tariff rate applied to tariff heading 15.03. a Available trade flow information daes not distinguish between unwrought and brought electro-plating anodes. This item has been included in the calculation of the simple tariff average for both unwrought and wrought nickel but unly ln unwrought nickel for the trade-weighted tariff average. ³Where the nickel chemical products are not specified separately (indicated by "ex" ln front of the tariff number) the trade flow figures s may include imports of chemical products other than those of nicekl. Since this occurs in the majority of the chemical products no weighted tariff average has been calculated In respect of these products. (B) found rate (Schedule LXIII - Slngapore). (-) Nil or less than US$500. Sources: Singapore Trade Statistics. Import and Exports, Vol. IV No 12 Department of Statistice. Singapore. 1983. International Customs Journal. Singapore 1984-85, Brussels 1984. Exchange Rate 1983: 2.1131 Singupore Dollars par US$, IMF Internatinal Financial Statistics, 1984. COUNTRY: Thalland Table 40 YEAR: 1982 (trade), 1984 (tariff treatment) Import of Nickel end Nickel Producte under Different Stages of Tariff Treatuent Accordtng to Stages of Processing (ln US$'000) Other Product Tariff Total Tariff Ave MFN Preferences¹ ' Description No Imports Simple % Weighted % Rate Value Origin Rate Value Origin ~ Ores and concentrates ex26.01.39 (158>( CHN,AUS,JPN,EEC %J Ash and residues ex26.03 Sub-Total _ 3 32 - Unwrought Matte and speiss 75.01.01 15 AUS Unalloyed 75.01.03 2,661 CAH.NOREECJPNFIN Alloyed 15.01.04 80 SUN 0.9 - Waste and scrap 15.01 _ Ferro-nickel 73.02.02 52 9 NOR Powders and flakes 75.03. 122 20Z 36 EEC,SIJE Electro-plating anodes 15.05.00 302 I PTVUSA Sub-Total 2.802 8.4 l.3 12-302 2.802 Wrought 15.02 152 605 JPNEEC,CHEAUTUSA 15.03.11 202 - EEC 15.03.21 152 585 JPNEECSGP 75.04 012 25 EEC.USA 75.05 30S PT_,USA Sub-Total 1.215 17.6 IS ISZ-3023 1.215 Chemicals4 ex28.28.09 901 NORJPN.ECAUSACAN ex28.30.29 681 EEC,JPN,C1IN,PIWDDR ex28.35.09 65 EEC,PWUSAKOR ex28.38.29 102 1,225 JPNEECUSACIINPW ex28. 39 241 REC,CRN,ISRJPN,CHE exl8.42.09 804 KEN,HKC,EECCIIN,RO0* exZd.43.09 345 6EC,JPN,CHN exZ.48.800 110 EECJPN.CIN Sub-Total 4,374 10 102 4,374 Finished manufactures 75.06.01 502 - USA 75.06.09 30Z* 17 J'NUSA,EEC Sub-Total 17 40 30 30I-50%3 17 Total 8,406 IS-5sh3 8,406

¹Preferential treatment granted to ASEAN countries. ²Available trade flow information daes not distinguish between unwrought and wrought etectro-plating anodes. This item has been lncluded in tie calculation of the simple tariff average for bath unwrought and wrought nickel but only In unwrought nickel for the trade-weighted tariff average. 3Tariff range. 4Where the nickel chemical products are not speficied separately (indicated by "ex" in front of the tariff number) the trade flow figures may unclude imports of chemical products other than those of nickel. Since this occurs ln the majority of the chemical product no weighted tariff average has been calculated tn respect of these products. (B) Bound rate (Schcdtule VI - Thailand). (-) Nil or less than US$500.

Sources: - Foreign Trade Statistics of Thailand, December 1982/B.E.2525. Department of Customs, Bangkok. - zrttund-Iandie1 s Inform.atIon, 1984. - GAfl:l,/4732. Exchange Rate 1982: 23.0 8alht per US$,IMF international Financial Statistics, 1984. MDF/W/21 Page 99

and are subject to an m.f.n. duty of 3 per cent. Table 40 shows that. unwrought refined nickel products constitute the most important nickel import product. The rate of duty is 1 per cent and imports come mainly from Canada, Norway, EEC, Japan and Finland. The rates on the other unwrought products varied from 5 per cent on ferro-nickel, 20 per cent on nickel powders and flakes to 30 per cent on electroplating anodes. The simple average tariff on unwrought products is 8.4 per cent and the weighted average is 1.3 per cent. On wrought nickel products import duties range from 15 to 30 per cent, the simple average duty is 17.6 per cent and the weighted average 15 per cent. Imports come mainly from Japan, EEC, United States, Singapore, Austria and Switzerland. Thailand imposes a duty of 10 per cent on all imports of nickel chemical products and imports come from varied sources, the main ones being Japan, EEC, United States, Canada, Republic of China and Hong Kong. Imports of finished nickel manufactures are subject to duties of 30 to 50 per cent. Imports are very small and come from Japan, United States and the EEC. The simple ar.d weighted average tariffs on finished manufactures are 40 per cent and 30 per cent respectively. 140. Yugoslavia is a net importer of nickel products although it has some domestic mine production. Including nickel chemicals, imports in 1980/81 amounted to US$57.8 million, 38.4 per cent of which was made up of imports of unwrought products mainly matte, alloyed nickel and ferro-nickel, 10.6 per cent wrought products, and 3.8 per cent finished nickel manufactures. Imports of chemical products amounted to, US$27.2 million or 47.1 per cent of total imports. Import duties on nickel products varied from 3 to 15 per cent on the basis of 1980-81 Yugoslavian tariff treatment. 141. As Table 41 shows, crude primary products, mainly ores and concentrates as well as ash and residues are subject to a 5 per cent m.f.n. duty rate. There were no imports of ores and concentrates. The import duties on unwrought products varied from 3 to 15 per cent and apart from small amounts of matte and of nickel powders and flakes, the main imported items are alloyed nickel products (3 per cent duty), ferro-nickel (15 per cent duty) and electroplating anodes (5 per cent duty). Imports of alloyed nickel come mainly from the USSR, Australia, EEC and the United States. Those of ferro-nickel come from Norway, EEC, Sweden, Brazil and Switzerland and electroplating anodes come from the EEC, Japan and the United States. 142. The nominal m.f.n. duty rate on imports of wrought nickel products, as well as the simple and weighted average rate is 5 per cent and the main sources of imports are the EEC, Japan, Sweden, United States, Hungary and Poland. The import duties on imports of nickel chemicals varies from 5 to 10 per cent and imports come mainly from the EEC, Japan, USSR, German Democratic Republic, Republic of China, Romania, Norway, Poland, Czechoslovakia, United States, Sweden and Switzerland. On the other hand, import duties on finished nickel manufactures are 10 to 12 per cent giving simple and weighted average duties of 11.7 and 10.6 per cent respectively. Imports of finished manufactures come mainly from the EEC, Japan, United States, Spain and Switzerland. 143. Table 42 summarizes the tariff treatment of nickel and nickel products in eight countries which have not been considered separately, namely, Chile, Czechoslovakia, Egypt, Iran, Nigeria, Poland, Romania, Venezuela. As in the previous Tables, it analyses the tariff rates according to different stages of processing. COUNTRY: Yugoslavia Table 41 YEAR: 1980 (trade), 1980-81 (tariff treatment) Import of Nickel and Nickel Products under Different Stages of Tariff Treatment Accordtng to Stages of Processing (in US$,000) Product Tariff Total Tariff Average HFN Other Preferences Description NO Importe Simple X Weighted 1 Rate Value origin Rate Value Origin '.3 . Ores and concentrate 26.01 52 - Ash and residues ex26.03 51(Q) (150) AUT,CHE,EEC 0 Sub-Total 5 5 5 - Unwrought lattes and speiss 75.01 5X 518 EEC Unalloyed 75.01 ) - AIloyed 75.01 ) 3< ')> 13.684 SUNAUSEECUSA Waste and scrap 15.0l 52 3 AUT Ferro-nickel ex73.02 152(Q) 5S,989 EECNORSIWECHEBR Powders and flakes 75 03 ) 371 .EECJPN,POL,USA lectro-platting anodes 75.05 ) 1,675 EEC,JPN,USA Sub-Total 22,240 5.9 6.5 32-1522 22,240 rought 15.02 ) 3.582 EECSWEHUN 75.03 ) 5 2,122 EECIIUNSWEUSA 75.041 ) 456 EECSWEPOL 75.05 ) - EECJPN,USA Sub-Total 6,160 5 5 52 6,160 heuicals3 ex2a.28 72 3,509 EEC.JPN.SUNCIINNOR exZ8.30 5X 3,448 EECDDRSUNI,CHNESP ex28. 30 8 552 SUNEEC ex28.30 ) 211 EEC,JPN,CHE,SUN ex28.35 ) 2,446 EECSUNDDRROH ex28.38 * 1 8,406 EEC,SUN.DDRPOLCIIN ex 28.39 ) 1I0 1,546 EECPOLDDRCSKISR ex2.42 ) 5.286 EECSUNDDR,CSK.CIIE ex2H.43 1)1,012 EEC,SUN,C1IHSWE ex28.48 ) 801 EECUSA,JPl Sub-Total 27,226 9.4 5_I0o22 Z7,226 inlahed manufactures 15.06 10 1,598 EEC 75.06 Il. 609 EEC.ELSPCIIEJPU.USA Sub-Total 2,20t l.7 10.6 102-12S2 2,207 Total 57,833 31-1522 57.833

Available trade flow information does not distinguish between unwrought and wrought electro-plating anodes. This item has been included in the calculation of the simple tariff average for bath unwrought and wrought nickel but only in unwrought nickel for the trade-veighted tariff average. Tariff range. Where the nickel chemical products are not specified separately (indicated by "ex" in front of the tariff number) the trade flow figures may include imports of chemicals products other than those of nickel. Since this occurs In the majority of the chemical products, no weighted tariff averagee has been calculated In respect of these products. (8) Bound rate (Schedule LVII - Yigoslavia). (Q) Customs quotas may be specified pursuant to stipulations of article 49 of the Customs Act. (-) Nil or less titan US$500. Sources: Statistics of Foreign Tradeof the SFR Yagusalavia for 1980, Federal Institute for StatistIcs, Beograd 1981. International Customs Jourinal, Yugoslavia 1980-81 Brunrsels, 1980. Exchange Rate 6/1980: 27.3 dîners per US$, according to Decision of the Federal Executive Council on dinar party. Table 42 Nickel and Nickel Producta Tariff Rates According to Different Stages of Processing (indicates countries for which trade statistics on tariff line baste are not available)

Product Description Tariff 1982-83 1982-83 1981-82 1979 1984 1981-62 1976-77 1982 No. Chile* Czechoslovakia Egypt Iran Nigeria Poland Romania Venezuela

Ores and concentrate 26.01 ) ) ) 2I ) Free 5% Free 10I Ash and residues ex26.03 ) 10 ) Free(B) ) ) 33.32 Free 5S )

Unwrought Matte and speiss 15.01 ) ) ) ) ) ) Unalloyed 75.01 ) ) ) ) ) ) ) Allowed 75.01 ) Frec(B> ) 2S(B) ) 5I ) 66.6S ) Frec ) Free(B) ) Waste and scrap 75.01 ) OI ) ) ) ) ) ) IS Ferro-nickel ex73.02 ) ) ) 5 ) S Powders and flakes 75.03 6.52(5) 15I 152 102 ) ) Free > Electro-plating anodes 75.05 4.252(5) 5I 10I 20Z 1I0 102

Wrought 75.02 ) 1.5(B) _ )1 5S.10,S33.3S.66.62 ) ) 10S 75.03 ) 10 1.75S(B),4.5S(B) ) 15 ) 102,33.31.66.6% ) 5S ) Free 251 75.04 1 3S(B) ) 20Z I toI 75.05 ) 4.25(A) 52 10 202 10 ))

Chemicals ex28.28 52 ) ) ) 10I ) 25S ex28.30 52(B),7.25S ) 52(B) ) ) 5I.8S.102S 22,5S ) ex28.35 4.15I(B) ) ) ) 5S :oz 5S.252 ex28.38 102 9.75I(B).52(B) 2I,5S(B) ) 15Z ) 82 ) 10 5S ex28.39 4.152(B).5S(B) ) ~~~)) 12I,15S1 1)) 5S.15I ex28.42 ) S )z 5 ) ) 5 ex28.43 52()) ) ) 0I f02 ) 5) ex28.48 > ) ) ) .i2I ) 52.352

Flnished manufacturers 75.06 10S 2I(B).2.52(B). 50,1752,IOOI,250Z 252,1002 66.6S 102 Frea 202 2175t(i2

Tariff range 102 Frec-9.752 22-2502 52-1002 Free-66.6I Free-lO Free-lOI 12-352 *All tariffsshown in the table are bound at 35 per cent (Schedule VII - Chile). (B) Bound rate (Schedules: X - Czechosiovakia; LXII - Egypt; X.III - Nigeria; LXV - Poland; LXIX - Romania

Sources: - Zoll-und-Handels Information: Iran, Nigeria, Venezuela. MDF/W/2 - International Customs Journal: Chile, Czechoaslovakia, Egypt, Poland, Rowania/Brussaels. Page10 -n ,va _.% cOnt

Il MDF/W/21 Page 102

144. ln Chile the tariff situation as of 1982-83 shows that there was a uniform duty of 10 per cent on all nickel products ranging from crude raw materials to finished nickel manufactures. In Czechoslovakia the tariff situation as of 1982-83 shows a range of bound duties varying from zero to 9.75 per cent. The duty on crude raw materials, such as ores and concentrates, ash and residues was zero. The zero duty also covered intermediate products such as matte and speiss, as well as ferro-nickel and unwrought refined nickel and alloyed nickel. On the other 'and, wrought products were subject to rates of duties varying from 1.5 to 6.5 per cent. On chemical products the tariff rates ranged from 5 to 9.75 pr cent while duties on finished nickel manufactures varied from 2 to 2.75 per cent. 145. In Egypt the tariff structure which existed in 1981-82 shows a range of duties varying from 2 to 2.50 per cent. There vas a duty of 2 per cent on crude nickel raw materials such as ores and concentrates as well as on intermediate products, unwrought refined nickel and ferro-nickel. On nickel chemicals there were two rates of bound duties, 2 per cent and 5 per cent, and on wrought nickel products they were 5 per cent and 15 per cent. Finished nickel manufactures were, on the other hand, subject to duties ranging from 50 to 250 per cent. The rates of duties on nickel and nickel products in Iran, as shown in the 1979 tariff systems, indicates a range varying from 5 to 100 per cent. Crude raw materials of nickel such as ores and concentrates, ash and residues, intermediate nickel products such as matte and speiss, unwrought refined nickel, ferro-nickel and alloyed nickel were subject to a duty of 5 per cent. Chemical nickel products were subject to a uniform duty of 15 per cent while the duties on wrought products varied from 10 to 15 per cent. Finished nickel manufactures were, on the other hand, subject to duties of 25 per cent and 100 per cent. 146. The 1984 tariff system in Nigeria shows that nickel and nickel products are subject to tariffs ranging from zero to 66.6 per cent. Ore and concentrates enjoy a duty-free entry. On the other hand, nickel ash and residues are subject to a duty of 33.3 per cent. Intermediate products as well as unwrought refined nickel and alloyed nickel are subject to duties of 66.6 per cent, while ferro-nickel has a duty of 5 per cent. Nickel chemicals are subject to two main rates, 5 and 10 per cent. On the other hand, the duties on wrought nickel products range from 5 to 66.6 per cent, while finished nickel manufactures are subject to a uniform duty of 66.6 per cent. 147. Import duties on nickel products in Poland as of 1931-82 range from zero to 15 per cent. Crude raw materials such as ores and concentrates attract a duty of 5 per cent, while nickel ash and residues enjoy a duty-free access. Unwrought intermediate products and refined nickel and alloyed nickel also enjoy a duty-free entry, while ferro-nickel imports are subject to a 5 per cent duty. Nickel chemicals were subject te duties ranging from 5 to 15 per cent and brought nickel products attracted duties of 5 per cent and 10 per cent. Finished nickel manufactures attracted a duty of 10 per cent. The available tariff information on Romania as reflected in the tariff system of 1976-77 shows that all nickel products imported into Romania were duty-free with the exception of nickel ash and residues which were subject to a duty of 5 per cent, as well as nickel chemicals which attracted a duty of 10 per cent. The tariff system of Venezuela in 1982 shows that crude nickel raw materials such as ores and concentrates, ash and residues attract a duty of 10 per cent; intermediate products as well as unwrought nickel and alloyed nickel, ferro-nickel and MDF/W/21 Page 103

nickel powders and flakes, on the other hand, attract a duty of only 1 per cent. Electroplating anodes attract a duty of 10 per cent, while wrought nickel products are subject to duty rates of 10 and 25 per cent. Nickel chemical imports attract duties varying from 2 to 35 per cent, and imports of finished nickel manufactures into Venezuela are subject to a uniform duty of 20 per cent. 19. Tariff escalation and effective tariff protection 148. As pointed out previously in document TAR/W/29, COM.TD/W/369 of 8 June 1982, a number of serious difficulties arise in any attempt to measure rates of effective tariff protection with a high degree of precision. These include lack of accurate information on input/output values in specific industries, as well as other factors such as the estimation of the relative importance of trade flows under m.f.n. and GSP rates, the calculation of ad valorem tariff equivalents of non-tariff measures, the establishment of appropriate weighting patterns, and accounting for technological change in industries. Nevertheless, as noted in TAR/W/18, of 5 March 1981, the effective rate of protection can be assessed with reasonable precision in the early stages of processing. Beyond the unwrought stage, precise measurement of effective rates of protection becomes increasingly difficult. As indicated in TAR/W/29 of 8 June 1982, where tariffs show escalation by successive processing stages, effective rates of protection are higher, often considerably so, than nominal tariff rates themselves. 149. Due to the methodological problems described above, the present study does not attempt to analyze effective tariff protection in the nickel , industry. However, the study shows nominal tariff protection granted to nickel and nickel products. It may be seen from this information that there is a fairly widespread tendency in a number of countries for nominal tariffs to increase with the stage of processing. Although many of the countries examined import nickel ores and concentrates and unwrought nickel duty-free, they apply positive m.f.n. rates of duty on wrought nickel products and nickel manufactures. Moreover, with respect to the latter two groups of products, it is often the case that duties are significantly higher on nickel manufactures than on wrought nickel products. 20. Non-tariff measures 150. Table 43 shows non-tariff measures applicable to imports of nickel and nickel products, as notified to the secretariat in the context of the periodic exercise of updating the Inventories of Non-Tariff Measures. The list covers four main measures: import prohibition; licensing; quotas and liberal licensing. The latter is often only an administrative measure and does not have a restrictive effect. In addition to the measures listed in this Table, there exist other measures such as certain forms of subsidies which apply to a wide range of products including nickel. These measures may take the form of govern ental and intergovernmental grants and loans, fiscal measures (e.g. tax incentives for processing industries), research assistance, etc., which are not being dealt with in this study. 151. Purchases of metallic ores and non-ferrous metals and articles thereof, when made by entities listed in Annex I to the-GATT Agreement on MDF/W/21 Page 104 Table 43 Non-Tariff Measures Affecting Trade in Nickel and Products Thereof

Nan-tariff measures Product Countriesthe measuremaintaining

On imports

(a) Prohibitions or ex75.04 Senegal embargo 75.06 Other articles of Tuinsia nickel (b) License suspended 75.04.0300 Brazil 75.04.0400 75.06 Other articles of nickel

(c) Discretionary 26.01.300 Nickel ores and Colombia Licensing concentrates 28.30.01 Chlorides and oxychlorides of nickel 28.39.01 Nitrites and nitrates of nickel 28.39 Nitrites and Israel nitrates of nickel 28.48.010 Salts and Colombia peroxysalts of inorganic acids

ex75. Nickel and articles Ghana thereof except matte, waste, scrap (ex75.01)

75.01 Nickel matte, speiss Colombia and other intermediate product of nickel metallurgy; unwrought nickel; nickel waste and scrap MDF/W/21 Page 105

Table 43 (cont'd)

Countries Non-tariff measures Product the measuremaintaining 75.02 Wrought bars, rods, Colombia angles, shapes and sections of nickel; nickel wire ex75.02 Wrought plates, Nigeria sheets, strips of nickel, nickel foil, nickel powders and flakes 75.06 Other articles of nickel 75.04 Tubes and pipes and Colombia blanks thereof of nickel; hollow bars and tubes and pipe fittings, etc., of nickel 75.05 Electroplating Colombia anodes of nickel, wrought or unwrought 75.06 Other articles of Colombia nickel (d) Quotas 26.01.700 Nickel ores Yugoslavia and concentrates 28.39 Nitrites and Sri Lanka nitrates of nickel 73.02.38 Ferro-nickel Yugoslavia ex75 Nickel and articles Senegal thereof Liberal licensing 26.01.700 Nickel ores Korea and concentrates 28.30 Chlorides and South Africa oxychlorides of nickel 28.35 Sulphides, including polysulphides of nickel MDF/W/21 Page 106

Table 43 (cont'd)

Countries Non-tariff measure Product the measuremaintaining ex73.02 Ferro-nickel South Africa 75.01 Nickel matte,speiss and other intermediate products of nickel, unwrought nickel waste and scrap 75.02 Wrought bars, rods, angles, shapes and sections of nickel; nickel wire 75.03 Wrought plates sheets, strips of nickel, nickel foil, nickel powders and flakes 75.04 Tubes, pipes and blanks thereof of nickel; hollow bars and tubes and pipe fittings etc., of nickel 75.05 Electroplating anodes of nickel wrought or unwrought MDE/W/21 Page 107

Government Procurement, are covered by this Agreement.¹ Statistical information on purchases of such products of government entities in 1981 and 1982 have been exchanged amongst the Parties to the Agreement. It might be noted that Article VIII of the Agreement contains general exceptions relating to procurement indispensable for national security or national defence purposes. In addition, it might be noted that defence agencies in countries Parties to the Agreement are not covered by the Agreement in respect of purchases of certain specific products.

SECTION V: Activities in Other International Organizations 21. The Third United Nations Conference on the Law of the Sea 152. As a major industrial metal, nickel has been the subject of studies in various international institutions such as the World Bank, the United Nations and UNCTAD. Two major international activities in recent years which are relevant to nickel have been the Third United Nations Conference on the Law of the Sea and the attempts by major producers and consumers of nickel to create an international forum for studies and discussions of nickel. 153. The Third United Nations Conference on the Law of the Sea (UNCLOS) vas convened in 1973 and ended, after nine years of negotiations, in the adoption in April 1982 of the United Nations Convention on the Law of the Sea which has since been awaiting its entry into force. One of the major subjects covered by the Convention is the possible exploitation of the mineral resources of the seabed outside national jurisdiction which, as deep sea exploration has revealed, is covered in numerous areas with nodules rich in manganese, nickel, copper, cobalt and other minerals. 154. Apart from the tremendous technological, environmental and financial² problems involved in deep seabed mining, some of the major long-term problems are the likely effects on land-based mining of the minerals involved and vice-versa and the need to reconcile conflicting national and corporate interests. The United Nations Convention on the Law of the Sea provides, inter alia, for the creation of an International Seabed Authority to participate in and regulate rational exploitation of deep seabed minerals. This provision has so far not received the general acceptance of all the countries involved.

¹Members to this Agreement are: Austria, Canada, EEC (Greece excepted), Finland, Japan, Norway, Sweden, Switzerland, United States, Israel, Hong Kong and Singapore. ²The original optimism regarding seabed mining has been severely tempered by a growing recognition of the serious technological problems involved and by the price prospects of the minerals to be exploited which cast serious doubt on their economic viability. The current thinking is that seabed nodule mining might not be seriously undertaken for a long time to come. MDF/W/21 Page 108

22. International cooperation on nickel 155. In spite of the position of nickel as one of the most important minerals in world trade, international cooperation on nickel unlike the case with many other minerals, has been practically non-existant. However, moves have been initiated in recent years to remedy this situation. A study by Canada and Australia in 1980 on information gaps in nickel which identified shortcomings in available nickel statistics, suggested what would be required in a nickel data system, and described various forms of intergovernmental cooperation involving other metals. After a few more years of further exploratory studies and discussions in which six of the major producing and consuming countries of nickel participated, a consensus was reached at a meeting in March 1984 that intergovernmental consultations among themselves had evolved to such a point where there was a need to broaden the discussions to include the active participation by all governments with an interest in the production or consumption of nickel. 156. In response to an invitation by the Governments of Canada and Australia, an intergovernmental meeting on nickel was held in Geneva from 22-24 October 1984. The purpose of this meeting was to explore the possibility of establishing an intergovernmental nickel discussion group to improve the statistics and other information on world nickel production, consumption and trade with a view to achieving greater transparency in the international nickel economy, and to provide a forum for consultation. It was attended by thirty-one countries representing over 95 per cent of world nickel production and over 90 per cent of world nickel consumption. 157. In welcoming the Australian/Canadian initiative, all delegations acknowledged both the desirability of developing intergovernmental cooperation on nickel and the constructive role that could be played by a forum designed to give effect to that development. It was felt that such a forum should provide for the participation of industry representatives as members of government delegations. 158. Broad recognition was expressed at the meeting, of the serious information gaps with respect to the world nickel economy, in terms of quality, timeliness and international comparability of available statistics. Most delegations indicated willingness and ability to improve the quality of nickel data they could provide. Given the very favourable attitudes evident at the meeting cowards developing cooperation, it was concluded that serious consideration should now be given in capitals to the early convening of a subsequent meeting. 159. In this connection, a consensus among the delegations was that the UNCTAD should be requested to convene such a meeting. 160. Under the auspices of UNCTAD a Preparatory Meeting on Nickel was held from 10 to 18 April 1985. The meeting vas attended by thirty-five countries including all the main producers and consumers of nickel. During the meeting there was a consensus that there existed substantial scope for improving intergovernmental cooperation on issues concerning nickel, in particular, by improving the information available on the international nickel economy and by providing a forum for international discussions on nickel. There was a consensus that the Trade and Development Board should request the Secretary-General of UNCTAD on behalf of the Secretary-General of the United Nations, to convene a negotiating conference on. the establishment of an autonomous International Nickel Study Group, later in the year. The draft terms of reference of the International Study Group envisage the following fuctions: MDF/W/21 Page 109

1. To establish the capacity for and undertake the continued monitoring of the world nickel market and its trends particularly by establishing, maintaining and continuously updating a -statistical system on the vorld production, stocks, trade and consumption of all forms of nickel. 2. To conduct between members consultations and exchanges of information on developments related to the production, stocks, trade and consumption of all forms of nickel. 3. To undertake studies as appropriate on a broad range of important issues concerning nickel. 4. To consider appropriate possible solutions to any special problems or difficulties which exist or may be expected to arise in nickel and are unlikely to be resolved in the ordinary development of world trade. 23. Customs Cooperation Council (Brussels) 161. Attached to this study as Annex II is the section on nickel and nickel products of the recently developed "Harmanized System" of commodity description and classification. The Harmonized Commodity Description and Coding System (H.S.), developed by the Customs Cooperation Council is envisaged by the CCC timetable to be applied, for those countries which decide to adopt it, as the basis for customs tariffs and international trade statistics nomenclatures with effect from 1 January 1987. The adoption of the Harmonized System is expected to ensure greater uniformity among countries in customs classification. 24. Summary and observations 162. Nickel is a major metal in industrial usage due to its intrinsic properties such as a high melting point, strength, durability, magnetism and resistance to corrosion and oxidization. Its main utilization is in the production of stainless steel and alloys. Consequently, the volume and rate of its consumption depends directly on the level and rate of industrial development. Over 90 per cent of the worlds nickel consumption is accounted for in the developed market economies and the centrally-planned economies. However, in recent years the highest growth rate in consumption of nickel has been in the more advanced developing countries. Since 1950 there has been a rapid growth in the global consumption of nickel which reached its highest point in 1979. Thereafter there was a sharp decline in consumption due mainly to a slowdown in industrial growth in the developed countries. After reaching a low point in 1982 the global level of consumption picked up in 1983. In the centrally-planned economies the level of consumption.in recent years appears to have been maintained on a slightly increasing trend, while in the developing countries the momentum in consumption growth appears to have been regained in 1983 after a fall in 1982. A small part of the fall in the volume of nickel consumption might be attributed to the growing competition from other substitutable metals, alloys and non-metallic products like plastics. This is the result of recent technological advancements which have enabled them to be employed, in usages hitherto attributed to nickel, at competitive costs. MDF/W/21 Page 110

163. In tune with the growth in consumption, nickel mine production capacity has seen a very rapid development in volume and structure during the past three decades especially in the 1950s and 1960s. While in the early 1950s over 80 per cent of mine production came mainly from sulphide ores in Canada, technological developments, which have enabled the use of ferro-nickel in stainless steel production, have led to a rapid development of laterite ores which are mostly located in tropical countries. Thus in 1983, developing countries accounted for 33.1 per cent of total mine production as against 36.5 per cent for developed countries and 30.4 per cent for centrally-planned economy countries. With developing countries now accounting for over 50 per cent of know nickel reserves, it is likely that their share in total mine production will continue to grow. The development of production capacity inthe 1960s and early 1970s has been such that with the decline in consumption over capacity has become a major feature in the nickel industry. 164. The corporate structure of nickel production has also undergone considerable changes in recent decades. In the 1950s and 1960s production was dominated by only three major mining companies to such an extent that they could set and control price. While the corporate structure is still relatively concentrated, about 44 companies now participate in mine production and prices are nov largely determined by LME operations. 165. The bulk of international trade in nickel products is in the form of unwrought refined nickel, alloyed nickel and ferro-nickel. Trade in nickel ore has tended to decline and only one major consuming country still imports ores. increasinglyy, developing countries prefer to export more processed products such as ferro-nickel, nickel oxide sinter, and unwrought refined nickel. However, they account for the bulk of the exports of nickel ores and of intermediate products such as nickel matter. In 1983 developing countries accounted for about 27.4 per cent of world exports of unwrought refined nickel products. Import trade in nickel and nickel products is dominated by developed countries. Imports of developing countries are mostly in the form of unwrought refined products. 166. Until the second half of the 1960s price stability was a major feature of the world's nickel economy with prices being set by the concerted action of the three major producers. With the fall in the market share of the major producers, the decline in world consumption and market over supply in the second half of the 1970s, producer prices gradually lost their influence on the market. With the introduction of LME trading in nickel in 1979, its price quotations determined mostly by market forces have eventually become the basis for pricing in nickel trade. 167. Most developed countries have bound m.f.n. duties on nickel and nickel products. A few countries have some m.f.n. duties bound at the ceiling level while applied m.f.n. rates are lover. Most of the positive m.f.n. duties are ad valorem. The majority of the positive m.f.n. rates on nickel and nickel products were reduced in the Tokyo Round. In one developed country a uniform fiscal duty has been consolidated into a customs tariff where imports were previously duty-free. 168. ln almost all developed countries imports of nickel ores and concentrates are duty-free. In some cases the duty-free treatment extends to chemicals and unwrought refined nickel products and ferro-nickel. Thereafter tariffs in most countries appear to rise with the degree of processing with the highest duties falling on finished nickel manufactures. MDF/W/21 Page 111

These duties appear to be protective in character rather than fiscal since many developed countries have nickel refining and manufacturing facilities. In this context the escalation of tariffs with the degree of processing could reveal a high degree of effective tariff protection. On the other hand the high nominal tariffs observed in many, although not all, developing countries appear to be fiscal rather than protective since many of these countries have no nickel refining or manufacturing industries. In a number of developing countries, however, with growing nickel industries, the high tariffs reflect, to an extent, a fairly high degree of protection. 169. Imports of nickel and nickel products into most developed countries from developing countries which are legible for GSP concessions are mostly duty-free or enjoy reduced preferential rates. Many developed countries and groups of countries also grant duty-free or preferential rates under other regional arrangements. 170. There are some non-tariff measures on nickel and nickel products, such as import prohibitions, quotas and licensing in certain countries. There are also other measures of a general practice in the form of government procurement or subsidies of various kinds in certain countries. However, no widespread non-tariff measures on nickel products are to be found in major importing markets. MDF/W/21 Page 112 .

AnnexI

Summary of dot PutcT&M Round Tariff m

aNiAMdrcandArticlesThereof f~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ rxwr ffl em-eurf _ ex6.0l Exm 2 Free(B) i Free(B) GSP:Free 11 ex.03 From Fm Free(B) Free(B) GSP: Free 1 exm.3O Free(B) 1 Free(B) 1 exm.30 225%(PUUaiY æoe,> Free(B) LJ (by law) M. hm 11 Free(B) o28.35 SulphidesSpd. a and?polyPutMpolysulpidesc " i ofeld.L Free(B) i GSP: Free 1 i Free(B) Free Free(B) 1 1 28.39 Free(B) GSP:Free 1 Carbon and lbac ofof nickel Free Free(B) GSP:Free Free ~~~~P:m cttu and cm a of n Free(B) Free(B) sa= d u«Wa1 acc t aciW Free Free(B) GSP:Free 1 Nicke almp. nyuklt mmd oaacM hd Free (partially bourd) Free(B) 1 .i 73.01 Free(B) iccamiaca products4Z of nickel 2:A43r IreC m 11 b lu) (excluding electro-placing Free (by law)R-. Fan 73.02 Wrought beo, rods, angles,shapess Free 2 andsections of nickel; nickelwirm Freea GSP 5.42 GSP:3.5 v.1 edu of a dd.doe of Lm liha ex);ni 0.d- S 252/1=4 (0.6» S L76.4/lt0o (0.42) GSP: 0.3Z (M: 0.M2 75.03 2Z I0(3) 62(s) jm~ fni.L-1 GSP:Free M. 4.32 M 3 11 Ilde Md of M 1 7S.04 20%(Cube and pipefirrings) of nickel;P se hollowro,bauS1ai~and iscubeand 2%(other) &%(a) .Joe uec adt fL"m.), of ~ SUS) GSP: 3Z 73.05 Electro-plating modes ofnickel, Up: Fan 6cE) M: 3.iS 1 produced by electrolysis

73.06 Otherarticlesof nickel 30%or AM.ooe/1 L52 Free(bylaw) GSP: Free GSP: From GSP. 6.32 M: 6S

*As ofJanuary1985 (B) - Boundrace (C) - Ceiling binding MDF/W/21 Page 113 Smmary of Pre-Tokyoand Post-TokyoRound Tariff Situation Affecting Nickel and Articles Thereof

Product I- keen o nFU

26601 «329001 Free Free(B) afS - -td 26.03 lMM0-1 (oulte rir, rUa ul ua) Frai) Fra() «2&28 Niclkeloxides and hydroxides 33506-1 1.52 12.52<1> exM30 Chlorides and 1U of nickel 152(C) 12.52(1) ZP: FGi SP: Fra 152(C) 9E.22(1 ex8M35 Sulphides and polymuiphides of nickel d2B35-1 15Z(C (E)

Sulphates andpersuophates UP: Fra CSP: Fra oS2839-1 v.39 Nitrites and nitrates of nickel 152(C 12.5 2() C: Pm CSP: FrC: eaL42 Carbonats and percarbonate of nickel 152(C 12.p(B) 1,g W: Fr. GSP: Fm iz2.43 Cyads andcomplexcyi of nickel 152(C 92t(s) Fra w2.48 Slats and peroxysalts of inorganicacids 152(C) Fu(B) es92848-Z( GS: Frai w62848-2 (amanm nickel sulphate) aex.02 Fereo-nickel «37506-1 S2(B) 42Z(B) SP: Fr c: Fri 75.01 Nickel mattes, nickel specissand other (i)matte intermediate products of nickel metallurgy; 355Z I 15e(B) pFra(B) unwrought nickel (excluding electro-plating (ii) unalloyved(lamps, ingots, blocks) annodes); nickel wasteandscrap .C35101-1 52(B) 42(B) GSP: Fre GSP: Frai (iî) &Lmed (Irtm, bIdcks. sht, ,bi. pip, blooks,slabs) a3550-1 Frai Free(B) M3550-1 17.5S(C) lO.22(C) Temporarily Free (till 30/6/1985)* (iv) %qute adW ac35109-1 17.5(8) 10.lQ(C) TMorily Frea (tili 30/611985)* Wroughtbars, rods, angles, shapesand er35500-1 Frai 4.3t(B) I75.02 acctions of nickel; nickel wire 355051 Fr«i 4.22(C) 19B2: Fra 3535-1 17.5S(C) 100.(C) TemporarilyFree (til 30/6/1985)* 102 6.82tB) GSP: 52 GQP: 4.52 ec35610-1 (classor kindmadein Canada) 17.52(C) ) ) 4.22(C) a i356101 (class orkind not madeinCanada) Fr ) 1982: Froe 71100-5 17.5S(B) 5.52(B) GSP: 8.5: GSP: 3.52 o40121-1) 12.5S(B) 4.52t() ) CSP: 62 CP: 32 c4122-1l) 6,f.) lS:tB) 10.2StB) ;P: 8.52 GSP: 6.5Z 17.52(B) I0.22(B) GSP: 9.52 GSP: 6.52 75.03 Wrought plates, sheets and strip of nickel «z35605-1 (see above under75.02) nickel foil; nickel powders andflakes «35700-1 17.52(B) 10.2%(B) GSP: Free CSP: Free 35515-1 xwer) Free(B) Free(B) 75.04 Tubas and pipes and blanks therefor, of nickel; 35510-1 Free(E) Free() hollow bars and tube and pipsfittings (for GSO àba under 75.03) example joints, elbows, sockets and flanges), 35700-l of nickel

75.05 Uoe-pl"atirg ofa nickel, vrutht ae ex35605-1 (see above under75.02) rzwztqmt lrnc3dIlz~dus. pirabai by ar358W-1 IFri(B) Fra(B)

75.06 Oum.r utidla of nickel ac35700-1 (see above under 75.03) ex7110O-1 17. 9.5(B) :.r(B) GSP: 9.5S GSP: 6.5S

*Custsoms Tariffeffective January 1, 1985, Departmental Consolidation Revenue Canada, CustomsandExcise. MOF/W/21 Page 114'

Summary of Pre-Tokyo and Round TariffSituation Affecting Nickelpost-Tokyoand Articles Thereof

ac 1 . Dogscz-jpcloe _ _ . ~~~~~~~~~~~~M - 1. ?Mt _ Fc1ff Nickel oew and Free(B) ?MO) Free (B) Free(B) uS) mli"a -- Md hydmmà ?MO) Free(B)e)

Chloridesanda1da mi ag7ch1al ci idcui 10.4Zo) (chlorides) 10.42(3> Free(B)) Free(B) z(s -I 91) 5.5(3) GSP:Free sPF

=283S IM l hId ci w 1 6.92() Free(B)o) C: Fm

am.u8 ald ;VU 5.6 2c1) (m n) 52M) Free(B) Free(B) 6=0 Gf. ftm M. ftm

3M39 l ntd 1 cf SUS) )(C *) Free(B) &JS2)oe æ*: Fm

«xM42 Czgbeum M pmb* of mi 8.8SZ() (cmboe on) 82() y%(C)* 11.23) ~ mu 6.6ZO). GSP: Free GSP: Free

a28.43 CyUaa c a1 Midm of idoel 8.SZ(3) ( tM* Free(B) Free(B) 152cR) (complexcyanides) 1=) 5*a) (W: ?rm 62Z SaltsZ.468 Sai. Md pacquilsce ioerc ad. 11.52(3) 6.6Fr Free(B) Free(B) GSP:Free IM3.02Ferro-nickeli.cim FM

75.01 m actbu , qida, s3aL, end o ur Free (B) FrM

rt4"1~~%MMMd 22

M cfWUW U i '4& 7-%a2 u * boxe ms*, -Ces duue 6Sz() 4.42) 2=(B) 1.8:(B) M?: Fm G: ?Fra =?: Free (M: Fm 7se.m serpt"41 n4ke % 75.03 Wrought places, = and strip 7M) 4.92(B) Free (B (powdersand flk)) fru(B) :al foLai; :dA1 u 0.5S2o (padu ma flkm) 0.52(3) 5=() (other) GU. Pa a:. Frm

75.04 '`''' p4 ad blk 1 zf, 8U3) 5.32(3) 52(5) 1.8(3B) of nickel; hollows barsandcube 5Z(B) (tub M pe K ) 3.82M cap: Fra GSP: Fr. Ge: Free 5P:

a coLsc aud oLd 42(3) Free(B) Frs«() 52(E) (w- 3.8S2() by tlàl : ?r. (W: Frai

of 75.06 Other articles nickel 4.5S(3) (sm , =a, c±vs a 'eshm 3.5:(3) 7.32(B) 5.1z(B) of a sha cbu. or l I dg me emu 6e 5(S3) (or cr1 -miai 3.E diffaoe dimal> 3) 6.52(s) (odur) 4.6 1 Gsp ?r i h P- 8X ¢P: Free : Frai wrought*Sm L/5004 orunwrought,includingthose MDF/W/21 Summary of Round Tariff Situation Page 115 AffectingPre-TokyoNickel and Articles Thereof

Pow 'APAU CCCNDescriptionPct _m:vL .2..0l Nickel crossand 52 3.SZC) Ftu0) Free(E) GSP:Free .2603 Ash and iàm =nwr qa1y n±dckJ. Free Free) Free() g2&28 nickL oes Md hys 102 6.22(8) 2(3) : 5S GSP: Free .2830 Chlorides andaych1s2 ci wtwL-t 8.92(3) 7.52(3) 4.92() CP. SS GSP. 52 GSP:Free I P Free 102 (=la ùow) 6.22(8) =2(chlorides) GSP: 2% «235 Sulphides andiddu ci IWAo1 9.8Z(8) 52(8) 3.7t') GSP:52sSS G: Fru GSP: Free .2&.8 Sulphides and l$utm =OCs) (Sulphite) S.SZC) 7.52(3) (p;eu ) 4.92(3) GSP: 5 GSP: sz G?: FP GSP: Free

.2830 Nitiritesand u of ~U1CM 8.92(8) 7.52(8) 4.9Z(3) (W: tu GSF: Free

Catoeuc id p _ cif .lu 5S2 3.8Z(B) 7.52SS) 4.92(8) GSP: Free GSP: Free GSP: Free GSP: Free

a2843 Cynciau and complexld ci nickl 222 (cy ) . 7.J2() 4.9Z() 25: S2

ur2.48 Salts and ummaic i inorganicacids 25 9.Z= ) i0 (oa S élslight ) 5.82(3) 7.52() (odlr) 4.92(3) GSP: Free GSP: Free I73.02 Ferre-nickel I(Z) 6.2(s) GSP: Free GSZ : Free

75.01 Nickel t, .dCai id Ocbe Free(B) ft«O) 0 mm, sne:is. tmiaoe =Crs *b ltm pro*= ce (

(a-t.hd3 - ); r !a of rPPo) o±cq L w us a GSP: Free GSP:Free

GSP: M53.44f or GSP: WaO.S or 6.32 whichever islessder is.l (3.82) CZ.92) 2.52(3) (alloys containing less thanFree (B) 5= nica M dc 1leu than 10% cobalt) 22.5(z) (ottea 92(3) GSP:Free GSP:Free W= Ume Md ZL5ZC3) (unalloyed) 6.8(ZC) r: Frm .: .0ra Z.52(3) (alloyed) Tra(B)

75.02 Wnqc bas. raed, mm, Free(B) FPrIm) 152(B) (unLoa) 7.2=CB sacrm of :- nickel wire I 52s() 1aflye) 5.82(B) GSP: Free S. !Sm

75.03 plia. 'es sfP of Ula s, sh ts Md i f1 'WA f1feu; t1àaL L5z(B) (Luflcgaf) 7.2=(3) 12.S5(3) (&Lloya) 5.82Cs) aP:r S?: Tm (ii) foil, powders and flakes ¥ioorî (6.= m) r=lod %'5% (m CS) 22.52(3) (aticyn) 62(3) GSP: ?u ¢;S?: Ftrm flO00/1% (5.=)(B) (unalloyes:for Free(B)

ict= fo vua a13Jj

73.04 Tubes andpipes rafnor, Free(B) Free (B) 152B) (uala"a) 7.=(B) ci mickel llm bm o8nd Md (allaf) 6.52() pi" f±O (for aopla jours. GSP:Free GSP: Free eJhU. _maa md lm ) , dUd."

75.05 larf q =du ci nL. Free(B) 'flSO/K (6.3S (3) W=qbXcor uwesc. '="WH dam Os?: ?r GSP: produced by electrolysis

75.06 Otherarticles of Free(B) Free(B) 252(B) (placed with praciousmetals)!Ct=(B) 1OS(B) (ocer) 5.d2(B) GSP: Free GSP: Free MDF/W/21 Page 116

SZMU-Y ci Acoed TatLef Sivmtcîm Aura==Z-. R= wd AVECIM mmoet

CCCNProductDescription ______.i26.01 Free(B) ?m L26.03

«2&28 Nickel oxides and hydroxides Free(partially?tu) bound) Free(B) EM(B) Fu(B)

Free Fus(E)

Free (B) Fts(E) CUÜOC d aq aid ci id" vErms) -« i ?M(B) cr2&39 Free(B) Free(B) ua) Fr«(S) Cy1phcCarbonatesu andcomplexandcy parcarbonatesofofnickelnickel

Mcdoim ma.=Ummw of .Ma) «M.48 Free(partiallyFree(B) bound) rmas) c7.02 Free(B) Ferro-nickeli ~lmd FM(B) 75.01. Free(partiallybound) kM(3) ', :-d:oeL iscsmiu-~ r4k ?(B)

Foe) 75.02 Wrought boxs,rods, angles,shapes1.023)and(6= and =os) SMâ) (or e) 51 .6zC3) (su. s.U voeod 4.6 E) sectionsof nickel;nickelwire sz CM: --m Osp: rus U~ 5c) stB) Free(B m o£p«ad1@ bmotao. .S-2:"(ee) 6SP: Free(PJaus. *M ar sono nita. !oW4.4Z(B) Md fIakus) ?-(r3) cmee(B)us GOP: Fra 75.04 52 5S) Z"(E3) ~M4Lk- ptforio1bDo bmsbslusMdcii oe.frmi GSP:Free G;P: r G: Fru G.S T's pipe fittings (for example joints, elbous,socketsand flanges)ofnickel SIP: 5.05 aa=Ldf modu rdcke FrP(B) TrP:E) ce w et hu GSP: Free GS: Pr« iSO à by iloesslysid 75.06 ou= rd aie ea3. S=O) 5zs) 5Z(E) ZE) M.: fP CM: r GSp: FrZo GS:

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~______Supplof 7rSY. u- Pse-tow i r SL MDF/W/21 Page 117 I ' Sv=IOW= 5 Pws Dcrt C D Affecting~~~~~~~M NickelandArticleThereof ffq% preIND j ez R Nickel orme and concentrates Free(B) préviE) euZS.02. iaZOS AM and residues containingmainly nickel Free(B) )E z Nickel oxides and hydrosides C: tri CSP: Tri o8.38 Sulphatesand pernulplates Sel.2flb0Sg(0.7%) (npritrates) Sw.fO .7 r)rrwso «u.Ii Nitrites and nitratesof nickel Ltue) s.2) Trea Suf.31ID0EgO.~%<) (uinramces) Svf2.6J1.00a(0.6%)(3 037: Trie CsP Te

àZ: Carbonates and percarbonates of nickel Free(B) S2.flJ0oeg.(O.Lb) Wl Tri CMP: *re

es23.13 Cy1deam andcomplex cyanides of nickel SvIO.75/IOO (0.L.)(I) SvT0.7S110Kga(0.1%)(3)

0928.48 Salts and peroxysaltsof inorganicale toi" 4.3%0I sunFnogoe(0.3n)(cE) GSP: Free

75.01 Nickle stre., nickel speit and other SvU0.25l1.00g(0.1) (E> intermediate products ofnickel GSP:Free eatallurM unwrought nickel (excludingelectro-plating anodes); nickelwaste and scrap 75.02 Wrought bars, rods, angles, shapesand L.5YJ) sections of nickel;nickel wire 037: Trie GSP: Free nickel wire cros-sectionaldimension L.Uffl> uv30/2 gs(0.5S)(E (Cver 0.Sm tce 6m) S ,(O.5%( CS: Tria 3vVS31100Ks(0.^)(E) (0.C or ties) SvTl/2.O C)(E) GSP: Free SPs Tre

75.03 Wrought plates, shoetsandstrip of (i)not surface-treated nickel; nickel foil; nickel powders 07TrB) SeF27fLOOEgsO.7% (rOkeetaglar, over SvT25/0Oa(0.,')(3> andflakes flakes) FTr(E) 0.SM thick) SullKgs(0.7S))(Otrecanmlar,0.3su S2/ s(0.6%)(S) or less thick) Sv96SflD~gs<0.6S>CE)(oet th= rueta- ST4/0(.6)(0)to(0.6>(> sSir shape) Sufl.OOlWOEga(1S>(I (drtlld, puoched. SvF00/l00gs(l%) (E) het) CSP1rs CPrro (al.) lSt ortlverid J L..S'(E> SurL2OtlD clf.>)S(3)OO/10(2.s) 03i trie CQ: Tri (fi om re ,aa-ec SueVl0I00g(3.Z2)3) 037: Tri 0s: Trio (iv) pouders and nakes S W:O. f/1a014X.L%)(E SvT0./IL007ps (0.N>(E) 057: Tri 07 Trie I 4 73.06 Tubes andpipes and blants therefor, L.(41) svnsnvo0Ks.6>(&> Su2n7/loOKg(O.46))(0 of nickel; hollow bars and tubeand W's Fr« GSi: Trou CSP: Tru pipe fittings (for exemple joints, elbows, snakcs andflanges) of nickel 73.05 Electro-plating modes of nickel. SvTi0l1Dfgs0.5~(I> svfLiSloka(o. 3%)(3) W mo or mnust, includingthose 037: Fre M.: Tr? producedby electrolysis 7.0 Otherarticles of nickel F7"(T) 3.:%c) tt) te . " . ethime 100grâ GSP:Free WX Fro -- or tlegs *ch SwT2.0O/W00Ka<.80(>m4 (O. <)a S?: re 05P: ?rai (iL) Vcs. Culw sud other containers for tndustrtla ;Urouea SUF6OL00K"c0.)E%)>(8)f2flOop(0.3)(3> 0SP- Tre : Trie (iti) Oter SwfSSl11OOegu<.à6>(E) (unworkadw 5vf53/IO0Kap(0.E)(E) SueflOIW Z.6(E) S L0EgsC2..0(E Svfl2O0Ioie(3.s(>) (Cuber) SonaoKga2.3%)( -c9p - :. . a aa «_st_ fi @ @ #{ "__4 . - .*____g ._,... CS7.r 1: MDF/W/21 Page 118. scum, ci Pte--Tcimo Md LOU amod TJXUf sientim AC4==-Mc"L Md ATCLCI" murs«

'26.01 @1.36 ftra) ?2NOM 6.03 Ash and resickness minly nickel 603.6d0 tcmaL u d - LO nicul by 'ic> Nickel oxides and hydroxides 419.72 52m(B) Chlorides and oxychloridesofnickel %S.) .. ft 3.7103) Sulphates and polysulphidesofnickel 3. M38 hies 419.74 52(B) 3.e(B) a GSP:Free ) UCS) «0.42 Carbonates and pbm oif~. ) )419.76 (nickelco rdEskpenickel ^t4- 3.7%> .c28.43 Cymmdu Md -c= cymmsd 0f f oxide or sulfare) GSP. Free ) 7M.48 Salts andperroxysalts of inorganicacids 4.37-%. 6oe.2a :;P: ?rM or unwrought, including theseproduced GSP:Free 1sp Yzoe by electrolysis

75.06 642.06 (vin =Cwadi dcimWC 11.8d. 7ZCS) b1 "C =Mi) «é2.78 (cloah. . Jbrk. *oSt4 4:0S) d f. C. Un f dm 90 wiz L U od142.7 6vfrm dotb. sum, fàmîa, *=mm -tmcu andfencing,co *am, e.:.) M3.70 (vpuAzplh-11dw bad My: ) 16Z(3) ) 16.(B) 656.20 fzlm d bom MaL mici cm ptacad dith d.r 252(B) 102(3) mff6.35 (f iL ci bms mmL. te., mrad 6.520s) 657.50 (othernickel articles,notspecifically9CS) 5.5C=) providedfor, notcoated with preciousmetal) 9%e: s r -

tan *Figure inparam ai vasm Icdce oi dt specifi culadcu ca chu b«Ui ci 19L3 . MDF/W/21 Page 119

ANNEX Il: The Harmonized System of Commodity Description and Classification Nickel and articles thereof (Chapter 75) "In this Chapter the following expressions have the meanings hereby assigned to then: "(a) Bars and rods Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production otherwisee than by simple triming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings. "(b) Profiles Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production otherwisee than by simple triming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings. "(c) Wire Rolled, extruded or drawn products, un coils, which have a uniform solid.cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including "flattened circles" and "modified rectangles", of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including "modified rectangular") cross-section exceeds one-tenth of the width. MDF/W/21 Page 120

"(d) Plates, sheets, strip and foil Flat-surfaced products (other than the unwrought products of heading No. 75.02), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including "modified rectangles" of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are: - of rectangular (including square) shape with a thickness not exceeding one-tenth of the width, - of a shape other than rectangular or square, of any size provided that they do not assume the character of articles of products of other headings. Reading No. 75.06 applies, inter alia, to plates, sheets, strip and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings. "(e) Tubes and pipes Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular, or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings. Subheading note "In this Chapter the following expressions have the meanings hereby assigned to them: "(a) Nickel, not alloyed Metal containing by weight at least 99 per cent of nickel plus cobalt, provided that: - the cobalt content by weight does not exceed 1.5 per cent, and

- the content by weight of any other element does not exceed the limit specified in the following table: MDF/W/21 Page 121

Elements Limiting content % by weight Fe Iron 0.5 0 Oxygen 0.4 Other elements, each 0.3 "(b) Nickel alloys

Metallic substances in which nickel predominates by weight over each of the other elements provided that:

- the content by weight of cobalt exceeds 1.5 per cent,

- the content by eight of at least one of the other elements shall be greater than the limit specified in the foregoing table, or

- the total content by weight of elements other than nickel plus cobalt exceeds 1 per cent." Reading H.S. No. _.;Code 75.01 Nickel mattes, nickel oxide sinters and other intermediate products of nickel metallurgy 7501.10 - Nickel mattes 7501.20 - Nickel oxide winters and other intermediate products of nickel metallurgy 75.02 Unwrought nickel 7502.10 - Nickel, not alloyed 7502.20 - Nickel alloys

75.03 7503.00 Nickel waste and scrap 75.04 7504.00 Nickel powders and flakes

75.05 Nickel bars, rods, profiles and wire - Bars, rods and profiles: 7505.11 Of nickel, not alloyed 7505.12 - Of nickel alloys _ Wire 7505.21 Of nickel, not alloyed 7505.22 - Of nickel alloys

75.06 Nickel plates, sheets, strip and foil 7506.10 Of nickel, not alloyed 7506.20 - Of nickel alloys

75.07 Nickel tubes, pipes and tube or pipe fittings (for example, couplings, elbows, sleeves) - Tubes and pipes 7507.11 -- Of nickel, not alloyed 7507.12 - Of nickel alloys 7507.20 - Tube or pipe fittings 15.08 7508.00 Other articles of nickel