LISBON (Scrap Monster): The International Nickel Study Group (INSG) has predicted further drop in nickel production during 2015 and 2016. Meantime, consumption is likely to show uptrend during this period, thus leading to tight supply situation in 2016. The above predictions are based on the discussions held during INSG’s the two-day meeting held on Oct 5th and 6th in Lisbon, Portugal.
According to INSG, the major shift in economic policies by China and the potential interest rate hike by the US Fed are likely to have huge impact on the world economy. On policy front, the Indonesian mineral export ban implemented in January last year has led to sharp decline in production of nickel pig iron (NPI ) in China. However Nickel production by China remained mostly unaffected due to increased nickel ore exports from the Philippines. Also, Indonesia’s NPI production is likely to increase in 2016, in the wake of new facilities coming online.
The world primary nickel production had totaled 1.994 Mt during the calendar year 2014. The production during 2015 is expected to fall to 1.954 Mt. The 2016 production will further fall to around 1.942 Mt, INSG notes.
Read more from original source: http://www.metal.com/newscontent