Nickel Supply to become tight. LISBON (Scrap Monster): The...

Nickel Supply to become tight.

LISBON (Scrap Monster): The International Nickel Study Group (INSG) has predicted further drop in nickel production during 2015 and 2016. Meantime, consumption is likely to show uptrend during this period, thus leading to tight supply situation in 2016. The above predictions are based on the discussions held during INSG’s the two-day meeting held on Oct 5^th and 6^th in Lisbon, Portugal.
According to INSG, the major shift in economic policies by China and the potential interest rate hike by the US Fed are likely to have huge impact on the world economy. On policy front, the Indonesian mineral export ban implemented in January last year has led to sharp decline in production of nickel pig iron (NPI) in China. However Nickel production by China remained mostly unaffected due to increased nickel ore exports from the Philippines. Also, Indonesia’s NPI production is likely to increase in 2016, in the wake of new facilities coming online.
The world primary nickel production had totaled 1.994 Mt during the calendar year 2014. The production during 2015 is expected to fall to 1.954 Mt. The 2016 production will further fall to around 1.942 Mt, INSG notes.
The world primary nickel usage is expected to grow further in 2015 and 2016. The usage which had totaled 1.863 Mt in 2014 is likely to increase to 1.905 Mt in 2015 and to 1.965 Mt in 2016. The consumption in China is estimated to remain at high levels during 2015 and 2016. As worldwide consumption increases, the supply balance is expected to turn to a state of tight supply in 2016.
The International Nickel Study Group (INSG) is an autonomous, intergovernmental organization established in 1990 and located in Lisbon, Portugal. Membership comprises nickel producing, using and trading countries.