INSG Foresees Notable Surge in Primary Nickel Demand

SEATTLE (Scrap Monster): The latest market report published by the International Nickel Study Group (INSG) foresees notable increase in global primary nickel demand during the upcoming years.

According to INSG, the demand is expected to hit 2.8 million tonnes in 2021 and rise further to reach 3.0 million tonnes in 2022. It must be noted that the demand had totalled only 2.4 million tonnes during the previous year. The ease in situation on account of widespread rollout of vaccine coupled with recovery in economies worldwide are considers as the main drivers of the rise in demand.

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The primary nickel production in 2021 is likely to total 2.6 million tonnes, thus resulting in a deficit of 134,000 tonnes. The estimated production of 3.1 million tonnes in 2022 will result in a surplus of 76,000 tonnes. This compares with primary nickel production and surplus of 2.5 million tonnes and 107,000 tonnes respectively during the previous year. The above production figures does not factor in production disruptions in China and Indonesia, INSG report said.

The global nickel demand has more than doubled from 1.1 million tonnes in 2000 to 2.4 million tonnes in 2020, growing at an annual rate of 3.8% over the past two decades. Asia accounts for nearly 82% of the total demand.