The global nickel market records a deficit during January-July 2015

Global nickel demand slightly exceeded production in the first seven months of this year. The global nickel market ended with a slight deficit of 16,000 tonnes in January-July 2015, showing a clear superiority in demand over production. The estimated surplus for the whole of 2014 was 241,800 tons, according to the latest figures published by the World Bureau of Metals Statistics (WBMS).

Statistics show that the stocks maintained by the LME were 44,000 tonnes at the end of July this year, up from the 2014 closing level.

Nickel production
World production from nickel mines amounted to 1,111 thousand tons in January-July 2015, which is 53 thousand tons lower compared to the corresponding period in the previous year. The Indonesian administration's export ban has led to a decline in the productivity of the country's mines.

The Indonesian government imposed a ban on the export of minerals in January 2014, requiring mining companies to process minerals in local factories before they can be sold overseas. Mining companies in the country are opposed to the government's decision, and an advisory group recently recommended that the government allow the export of minerals for one year, especially nickel. However, the government said it will consider other incentives.

The production of refined nickel in January-July amounted to 1,096 thousand tons. The total production of nickel refineries (refineries) was 1,701 thousand tonnes in July 2015. Japan's refinery production increased significantly over the first seven months of the year compared to 2014.

Nickel demand
The consumption of refined nickel reached 1,112 thousand tons in January-July 2015, and in July this year the consumption of nickel by the factories amounted to 201.50 thousand tons. Nickel demand in Japan was marginally higher by 0.4 thousand tons during the period from January to July this year compared to the previous year. Global demand for nickel increased by 103 thousand tons on an annualized level.