Global Nickel Market to See Supply Deficit in 2016, SMM Expects

SHANGHAI, Jul. 12 (SMM) – Global nickel market will see supply deficit in 2016, Shanghai Metals Market foresaw. 

“Supply deficit in global nickel market is expected to reach around 18,000 tonnes in 2016,” SMM nickel analyst predicted at SMM 9th Nickel Trading Summit held from Jul. 7-8. 

In 2016, global primary nickel supply is expected to fall 23,000 tonnes, SMM also expects, after combining a bigger drop of 4.5 per cent (-3.8 per cent in 2015) in global nickel plate output and a slight growth of 1.4 per cent in global NPI and ferronickel production. 

China Nickel Ore Inventories Continue Growing, SMM Reports 

China’s primary nickel output is expected to drop by around 60,000 tonnes in 2016, SMM foresaw at the summit, which will become the country with with the most significant decline in primary nickel supply. Russia’s supply will also drop obviously, but not as big as China’s.  

On the demand side, global primary nickel demand will continue growing in 2016, up 5 per cent year-on-year, SMM estimated. 

Nickel demand from stainless steel sector will rise to 69 per cent in 2016, and that from plating and alloy will account for the rest 31 per cent.

Nickel Price to Advance in 2H 2016, SMM Predicts

“China will contribute to around 50 percent in global nickel demand in 2016, with year-on-year growth expected at 4 per cent,” SMM nickel analyst told attendees at the summit.  

In China, the stainless steel sector will remain the top nickel consumer, accounting for 83.13 per cent, and demand from the battery sector will also become a new driving force after a rapid growth in new energy vehicle market, SMM explained.  

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