The nation’s manufacturing of high-grade nickel can also be forecast to develop, it added.
International demand for the steel in 2025 was seen growing by 7.1% from this yr to three.55 million tons, whereas provide was prone to climb 7.4% to three.65 million tons, SMM mentioned.
Provide and demand in a decrease purity type of so-called Class 2 nickel is anticipated to be roughly balanced subsequent yr regardless of greater NPI provide from Indonesia, SMM govt officer Yusuke Niwa mentioned.
“However we anticipate a surplus in (the almost-pure) Class 1 nickel as a result of output growth by Indonesia’s new smelters,” he mentioned.
Nickel is primarily used within the stainless-steel sector, however can also be a important element in lithium-ion batteries that energy electrical automobiles, the place demand is ready to surge within the coming years.
SMM, which provides cathode supplies for the Panasonic lithium-ion batteries utilized in Tesla EVs, predicts that world demand for nickel utilized in batteries will develop to round 520,000 tons in 2025 from about 470,000 tons this yr.
Nonetheless, Niwa expressed warning in regards to the outlook, noting: “The EV market surroundings seems to be fairly troublesome, besides in China.”
“Whereas we anticipate subsequent yr’s demand to develop by 50,000 tons from this yr… there’s a chance it might fall in need of that projection,” he added.
(By Yuka Obayashi; Modifying by Jan Harvey)