Global nickel market surplus to narrow in 2024 -INSG

The surplus in the global nickel market is expected to narrow to 109,000 metric tons in 2024 from 163,000 tons in 2023, the International Nickel Study Group (INSG) said on Wednesday.

Prices for nickel NICKEL1!, used in stainless steel and electric vehicle batteries, fell by 45% in 2023 as top producer Indonesia boosted output. They are up 15% so far this year as the country reviews applications for mining quota approvals.

Global nickel output is expected to rise to 3.55 million tons in 2024 from 3.36 million tons in 2023 as production of different types of nickel products in Indonesia continues to increase, the INSG said.

In China, overall output is expected to rise too as higher nickel cathode and nickel sulphate production offset lower nickel pig iron production.

"Elsewhere, due to profitability issues, a number of producing facilities have been mothballed, reduced production or are contemplating the future possibility of one of these options," the INSG added.

Global demand for nickel is expected to increase to 3.45 million tons in 2024 from 3.19 million tons in 2023 amid an expanding stainless steel sector in China and Indonesia, the Lisbon-based group said.