What key questions does this nickel market outlook answer?
- How long do we expect the nickel market to stay in deficit? How will this affect prices
- As electric vehicles grow in popularity, will there be enough nickel to meet nickel demand for the battery chemicals EVs need?
- What’s driving nickel demand in the short term?
The nickel market outlook remains one of long-term structural deficit and higher prices. World stainless melt production is expected to increase by around 16% by 2025, before slowing. However, there are risks to nickel uptake including falling austenitic ratios and rising scrap use in China. Also, penetration of the nickel market by Indonesian stainless will force other producers to cut output. Longer term nickel demand is driven by the electric vehicle battery segment, not least because high-nickel battery chemistries will become increasingly dominant. But where is all the nickel going to come from? Do recently announced hydrometallurgical projects in Indonesia really provide the answer?