According to the International Nickel Study Group (INSG), global primary nickel demand will increase to 2.8 million tons this year and 3 million tons next year.

As for production, INSG expected primary nickel production to reach 2.6 million tons this year and 3.1 million tons next year, with a nickel shortage of 134,000 tons expected this year and a surplus of 76,000 tons next year.

However, INSG noted that an increase in new nickel pig iron (NPI) projects last year, coupled with high-pressure acid leaching (HPAL) projects being developed in Indonesia and other countries, could increase nickel production.

INSG also said world demand for nickel increased from 1.1 million tons in 2000 to 2.4 million tons in 2020, with an average annual growth rate of 3.8% over the past 20 years.

Asia remained the largest nickel market, accounting for about 82% of global demand, with China alone accounting for nearly 60%, up from 5.5% in 2000.