TOKYO, Oct 05 (Reuters): The global nickel market is expected to remain in surplus next year as the output of low-grade nickel pig iron (NPI) will continue to grow in Indonesia, Sumitomo Metal Mining said on Thursday.
The surplus will widen to 36,000 tonnes from 24,000 tonnes this year as Indonesia's NPI production will increase by 10.3 per cent to 1.27 million tonnes, after a 16.1 per cent rise in 2023, Japan's biggest nickel smelter said during their half-year market outlook presentation.
Global demand for the metal in 2024 was seen increasing by 8.5 per cent from this year to 3.35 million tons, while supply was likely to climb 8.9 per cent from a year earlier to 3.39 million tons, the company said.
"We expect strong demand for batteries in 2024 as the electric vehicle (EVs) market is set to grow in China as well as Europe," Yusuke Niwa, general manager of Sumitomo Metal's nickel sales and raw materials department, said during the presentation.
"Demand for stainless steelmaking will also expand gradually," he said.
Nickel is mainly used in the stainless steel sector, but is also a vital ingredient for the lithium-ion batteries used to power EVs, where demand is set to accelerate over coming years.
Sumitomo Metal, which supplies cathode materials for the Panasonic lithium-ion batteries used in Tesla EVs, predicted that global demand for nickel used in batteries would rise to around 550,000 tonnes in 2024 from about 450,000 tonnes this year.
Global nickel supply surplus may widen next year: Sumitomo Metal
FE Team | Published: October 05, 2023 23:45:12
Global nickel supply surplus may widen next year: Sumitomo Metal
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