The global nickel market is expected to face a supply surplus of 198,000 mt in 2025.

On Thursday, April 24, the International Nickel Study Group (INSG) forecasted a global nickel market supply surplus of 198,000 mt this year.

The organization also projected global primary nickel usage at 3.537 million mt and global primary nickel production at 3.735 million mt in 2025.

The Lisbon-based INSG stated that the surplus was 179,000 mt in 2024 and 170,000 mt in 2023.

Global primary nickel production was 3.363 million mt in 2023 and 3.526 million mt in 2024, while usage was 3.193 million mt and 3.347 million mt, respectively.

The report noted that delayed issuance of mining permits (RKABs) in Indonesia has led to tight ore supply in the nickel market, adding that the impact of new special usage fees on the mining industry has not been fully assessed.

The report mentioned that China's primary nickel production is also expected to increase, driven by higher output of cathode nickel and nickel sulphate.

Last year, nickel prices fell by more than 7%, but have risen by around 3% so far this year.