A few months ago, expectations had been for surpluses in the second half of this year, but now shortages are more likely.
“This year has seen one of the most remarkable turnarounds in nickel consumption, it has been driven by booming conditions in the stainless steel and battery markets,” said Macquarie analyst Jim Lennon.
“But the relentless rise in Indonesian production, combined with an expected slowdown in the pace of nickel consumption growth should tip the market into over-supply in 2022/23.”
