Sumitomo Metal Anticipates Wider Nickel Market Surplus in 2025

In 2025, the supply of Class 2 nickel is expected to stay balanced despite an increase in the supply of NPI from Indonesia.

SEATTLE (Scrap Monster): According to a statement by Japanese company Sumitomo Metal Mining (SMM), there will likely be a greater supply excess in the global nickel market in 2025. The surplus is predicted to increase from 86,000 metric tons in 2024 to nearly 104,000 metric tons next year. The Indonesian output of low-grade nickel pig iron is expected to rise by 11.3% to 1.67 million tons in 2025.

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The SMM half-yearly market forecast research projects that from 2024 to 3.55 million tons the following year, there would be a 7.1% increase in the world's nickel demand. In addition, a 7.4% increase in supply, or 3.65 million tons, is anticipated. In 2025, the supply of Class 2 nickel is expected to stay balanced despite an increase in the supply of NPI from Indonesia.

The company anticipates a robust demand for nickel from the conventional stainless steel industry. In addition, as nickel is a necessary component of lithium-ion batteries, the rise in demand for electric vehicles will increase the metal's demand. The demand for nickel used in batteries is expected to rise significantly globally, from around 470,000 tons in 2024 to approximately 520,000 tons in 2025, according to SMM.

The company did point out that, outside of China, the EV market is expected to have difficulties, which could lead to demand not meeting expectations.

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