INSG Expects Global Nickel Supply To Surge 18.2%, Driven By New Capacity in Indonesia

According to Mining.com, citing Reuters, global nickel consumption jumped 16.2 percent last year, driven by a combination of the stainless steel industry, traditionally a major consumer market, and the fast-growing battery end-use industry. The result was a nickel shortage of 168,000 tonnes, the biggest gap in at least a decade, according to the latest statistics from the International Nickel Study Group (INSG).

INSG expects consumption to grow another 8.6 percent this year to exceed 3 million tons for the first time in history. But even rapid expansion won't keep pace with INSG's projected supply growth. Global nickel supply is expected to surge 18.2%, driven by new capacity in Indonesia, according to INSG. INSG forecasts a return to a slight surplus of about 67,000 tonnes this year, though whether this will lead to lower prices is debatable.