Nickel Stockpiles are Declining

Nickel prices are nearing 7 USD/lb, while stockpiles are decreasing past the 300 000 tonne barrier. Japan’s largest nickel smelter, Sumitomo Metal Mining expects the global nickel market deficit to increase past 88 000 tonnes, surpassing last year’s deficit of 72 000 tonnes. Demand has increased by 7.3% this year, up to 2.298 million tonnes, due to stainless steel and batteries demand. The supply has only risen by 6.8% to 2.210 million tonnes. EV batteries are a new source of demand for nickel, likely causing the deficit to increase, something suppliers might not have been fully prepared for. This begs the question, what are we going to do to meet the demand?

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