General Agreement on Tariffs and Trade
Total Page:16
File Type:pdf, Size:1020Kb
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.