Sumitomo Metal Mining Anticipates Deficit Global Nickel Market in 2023

SEATTLE (Scrap Monster): Tokyo, Japan-based mining, non-ferrous metal smelting and refining major Sumitomo Metal Mining Co. Ltd announced that it expects the global nickel market to remain in deficit for the third consecutive year in 2023, contrary to several recent forecasts of a surplus global nickel market next year. However, the deficit is likely to decline from 108,000 tonnes in 2022 to around 63,000 tonnes next year.

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According to Yusuke Niwa, general manager of Sumitomo Metal’s nickel sales and raw materials division, the global nickel metal demand is likely to witness 7.1% surge next year to total 3.14 million tonnes. The rise in demand will be mainly driven by robust demand for battery, chip-making equipment and oil-well tubular.

The supply too is expected to see 9% increase to 3.08 million tonnes, driven by notable increase in low-grade nickel pig iron (NPI) output in Indonesia.

The company foresees strong demand for batteries. The predicted boost in demand for electric vehicles would lead to significant rise in global demand for nickel used in batteries from 410,000 tonnes this year to over 500,000 tonnes in 2023. It must be noted that nickel is a vital component for lithium-ion batteries, whose demand is projected to witness notable jump in the coming years.