According to the International Nickel Study Group (INSG), global primary nickel production is projected to fall by 5.6% to 3.356 million tonnes in 2024, following a significant increase of 16.1% last year which saw production levels reach 3.554 million tonnes. This forecast does not account for any major operational disruptions that could further impact production levels.
Conversely, global nickel consumption is expected to rise by 7.9% to 3.445 million tonnes this year, building on a 7.8% increase in 2023. Despite the growth in consumption, the global nickel market is anticipated to remain in surplus, with an estimated oversupply of 109,000 tonnes in 2024, a decrease from 163,000 tonnes last year but an increase from 98,000 tonnes in 2022.
The INSG highlighted that the global economy is expected to continue growing in 2024, paralleling the trend observed in 2023, with global inflation anticipated to gradually decline. The World Stainless Association reported a 4.6% increase in global stainless steel production last year, reaching 58.4 million tonnes, with further growth expected in 2024, particularly in China and Indonesia.
Despite these positive trends, the growth rate of nickel usage in electric vehicle batteries has been weaker than expected. This slowdown is attributed to factors such as the phase-out of subsidies for electric mobility and competition from other battery technologies, particularly lithium-iron-phosphate batteries.
Production dynamics are also shifting geographically, with Indonesia poised to increase its output of various nickel products, including nickel-containing pig iron (NPI). Meanwhile, China is likely to see a decline in NPI production in 2024, though increases in the production of cathodes and other nickel products are expected to lead to an overall rise in output.
The report also noted that due to profitability issues, several production plants in other countries have been mothballed or have reduced output, with some considering these options for the future.
Founded in 1990 and based in Lisbon, Portugal, the INSG is an independent intergovernmental organization that includes major nickel producing and consuming countries such as Australia, Brazil, Cuba, several European nations, Japan, and Russia among its members. 
