Fitch Solutions Foresees 8.3% Surge in Nickel Mine Output

SEATTLE (Scrap Monster):  The global nickel mine production is expected to record a year-on-year growth by 8.3% in 2021, said the latest report published by Fitch Solutions. This is modestly higher when matched with the average growth of 5.9% over the past decade. However, it will not be sufficient to offset the 23.3% dip in nickel output projected for the current year.

The near-term nickel mine output growth will be mainly driven by recovery in mine output in the Philippines and Indonesia. The Philippines is poised to regain its spot as the largest global producer. The nickel ore export ban had significantly impacted Indonesian production in 2020. However, mineral production in the country is expected to pick up in 2021, as the country ramps up its nickel smelting and refining capacity.

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In the longer term, Fitch forecasts nickel mine production to witness an average annual growth of 3.7% year-on-year during 2021-’21. By 2029, global nickel production is expected to reach 2.7mnt, as compared with 2.0mnt in 2020.

Australia, with a solid project pipeline, will continue to remain as a best-performing major producer. On the other hand, Russian nickel production is expected to grow at the slowest rate, mainly on account of no new projects expected to come online.

In the long-run, rising nickel prices will support project development, Fitch Solutions report said.