Global nickel long-term outlook Q2 2016

Despite the market moving into its first quarterly deficit since Q2/11, nickel prices have remained around an average of US$3.95/lb (US$8,725/t) since March. Attempts to break higher have been undermined by high metal stocks and an uncertain Chinese economy. However, China's stainless market appears to have turned around from a pessimistic one of weak demand to one that is optimistically resurgent, and the results of our latest stainless mill survey are consistent with that perceived strength. The incorporation of this more positive outlook has led to an increase in our world nickel demand forecasts, with 8% growth now expected in 2016, to 1.99Mt, and the total rising to 2.25Mt in 2025.