The International Nickel Study Group (INSG) on Tuesday forecast a nickel market surplus of 209 000 metric tons for 2025, increasing to 261 000 tons in 2026.
Global demand for nickel is expected to increase to 3.82-million tons in 2026 versus 3.60-million in 2025, the INSG said.
At the same time, global output of nickel is expected to rise from 3.81-million tons in 2025 to 4.09-million in 2026, the Lisbon-based group said.
Indonesia, the world’s leading nickel producer, has stepped up efforts to control its mining sector, including delaying the issuance of mining permits (RKABs), seizing lands that lack forestry permits, and sanctioning companies over missing reclamation and post-mining guarantees, the report said.
However, the impact on nickel feed has been limited, and output is expected to continue rising in 2025 and 2026.
Prices for nickel, used in stainless steel and electric vehicle batteries, fell by more than 7% in 2024 and are up about 0.9% so far this year.
The INSG forecasts continued growth in the stainless steel sector through 2025 and 2026.
