The International Nickel Study Group (INSG) reported world primary nickel production of 2.610Mt in 2021 and 3.060Mt in 2022. INSG forecasts this to reach 3.374Mt in 2023. The estimates do not include any adjustment factor for possible production disruptions.

INSG said that world primary nickel usage was 2.779Mt in 2021 and 2.955Mt in 2022. The INSG forecasts an increase to 3.134Mt in 2023. The implicit market balances are therefore a deficit of 169kt in 2021, and surpluses of 105kt in 2022 and 239kt in 2023.

Historically, market surpluses have been linked to LME deliverable/class I nickel, but in 2023 the surplus will be mainly due to class II and nickel chemicals (principally nickel sulfate).

INSG forecasts nickel pig iron (NPI) production in Indonesia to continue to rise, and to decline further in China. Also in Indonesia, the conversion of NPI to nickel matte is growing, high pressure acid leaching (HPAL) plants to produce mixed hydroxide precipitate (MHP) are continuing to ramp up output, and the first nickel sulfate project was commissioned last month.

The International Nickel Study Group (INSG) is an autonomous, intergovernmental organization established in 1990 and located in Lisbon, Portugal. Membership comprises nickel producing, using and trading countries. The INSG has no provision for market stabilization activities or market intervention of any kind.