Sumitomo Metal Mining Co., Ltd., a Japan-based miner and smelter, forecasted a larger global nickel surplus of 215,000 tons in 2025, up from 173,000 tons last year, driven by a 5.7% rise in Indonesian low-grade nickel pig iron production.

The company foresaw that global nickel demand would grow 3.2% this year, and supply would outpace it with a 4.3% increase to 3.64 million tons.

Executive Officer Yusuke Niwa said the impact of US tariffs is hard to predict, and there are potential demand risks in nickel-based alloys used in aircraft engines if the US economy slows.