Hex Nuts,Left Hand Thread Hex Nut,Left Hand Thread Nut,Carbon Steel Hex Nut Kunshan Liyue Hardware Products Co.,Ltd , https://www.fixlyhardware.com
**Abstract:** According to a report from BusinessLine, an Indian media outlet, the global nickel market has experienced a period of tight supply in recent years. However, signs are emerging that the market may shift toward oversupply this year. This is due to a moderate increase in supply, while demand continues to grow. The report forecasts a potential supply-demand gap in 2015, driven by rising production and consumption.
Global new mine output is on the rise, and China’s nickel pig iron production remains strong, acting as a key driver for increased nickel supply. In China, investments in low-cost nickel laterite smelting furnaces have surged, which has shifted the cost curve for nickel production. As a result, nickel prices have fallen to the cost lines of many existing producers, putting pressure on profit margins.
The sharp spike in nickel prices in 2007 led to long-term investment challenges for producers outside of China. Meanwhile, the close link between the stainless steel industry and nickel consumption is well understood by market participants. Nickel pig iron is primarily used by Chinese stainless steel producers, while laterite nickel ore mainly comes from Indonesia and the Philippines. However, Indonesia is also expanding its nickel pig iron smelting capacity, which could benefit producers globally and signal a structural shift in the stainless steel sector.
This development may allow stainless steel producers to boost output while potentially lowering costs. However, the oversupply situation is expected to continue exerting downward pressure on nickel prices until producers cut back on pig iron output or delay/abandon new projects.
According to the report, with the expansion of nickel pig iron production capacity and new nickel ore output, the growth rate of total nickel supply between 2013 and 2015 is expected to be slower than in previous years. On the demand side, the global nickel market remains robust, with the stainless steel industry accounting for roughly one-third of total nickel usage.
Analysts suggest that as the global economy recovers, demand for stainless steel will likely rise. In China, government policies promoting high-value-added products and improved energy efficiency are expected to further drive stainless steel consumption.
Indonesia, the world's largest nickel ore exporter, has attempted to impose an export ban on nickel ore, but it hasn't significantly boosted nickel prices. In the short term, downward pressure on nickel prices is still present. For the next two quarters, the average LME spot price for nickel is expected to hover around $15,000 per ton, with a volatility of about 5%.
The biggest risk to nickel prices remains the rapid expansion of Chinese nickel pig iron production. However, if Indonesia strictly enforces its nickel ore export ban, exports could drop sharply, potentially pushing nickel prices up to $17,000 per ton.