Nornickel expects nickel market surplus of 40,000 tonnes in 2022, rising to 100,000 tonnes in 2023
MOSCOW. May 23 (Interfax) - Nornickel expects a nickel market surplus of around 40,000 tonnes in 2022, the Russian metals giant said in a market review it drafted in conjunction with ICBC Standard Bank.
This is consistent with a forecast given at the end of last year.
There was a market deficit of 149,000 tonnes in 2021.
"The 2022 nickel market is currently expected to be in a mild surplus of around 40,000 tonnes and mostly in low-grade nickel. It leaves our previous forecast virtually unchanged," Nornickel said.
"In 2023, we expect the market surplus to widen to around 100,000 tonnes, predominantly in low-grade nickel, on the back of the new nickel pig iron capacities in Indonesia, coupled with the growing production of nickel chemicals and a further growth of Class 1 nickel and ferronickel output," it said.
"A 16% increase in 2023 nickel supply is anticipated to outpace the growing demand from the stainless steel and battery sectors, with the primary nickel use rising by 14% year-on-year. However, higher EV uptake and stainless steel output could still lead to even stronger nickel demand, while the ramp-up of Indonesian nickel pig iron capacities and other projects across the globe could underperform again," it said.