Global Nickel Demand Forecast 2016 - 2017

Global nickel consumption is expected to experience minimal growth in 2016 and 2017 as a result of weak economic growth and a lack of tangible growth in steel production. Nickel demand will rise just 1 percent from 2015 levels to 1.91 million tonnes in 2016, while the forecast for 2017 suggests a further 1.8 percent year on year to 1.94 million tonnes.

Nickel consumption is closely related to the demand for corrosion-resistant steels for projects in various industries that require welding using stainless steel welding rods with a reduced carbon content, such as tigrod 316lsi , since the products are operated at temperatures from -196 to 350 ° C. Demand is especially high in China, which accounts for 51 percent of world consumption.

The decline in the production of refined nickel in China and Russia this year will reduce global production by 3.6% compared to 2015 to 1.91 million tons, the report said. Increased production in Indonesia, which has banned the export of crude ore since 2014, and other small producers will partially offset the decline.

At the same time, nickel mined is expected to decline 2.6 percent to 2.1 million tonnes in 2016. Low nickel prices on the LME, which are forecast to decline by about 26 percent year on year to an average of $ 8,708 per tonne in 2016, could limit any investment in new projects. Any increase in consumption will be covered by increased production from the existing mines.

The world's largest producer in the Philippines is expected to decline 16% this year, as the new government implements measures to improve environmental compliance in the mining industry. The downturn will be more than offset by a 7% increase in Canadian nickel production to 252,000 million tonnes, with New Caledonia production increasing 15% to 213,800 million tonnes in 2016.

Global production of mined nickel is likely to grow 1.8% year-on-year in 2017 to 2.13 million tonnes, supported by high prices and a modest increase in consumption, according to the report.