Nickel: Is the sky falling??

Don't want to be crying wolf but!!

Headline:

*   Sizeable structural deficits of Nickel will exist in the future:

*   Global stocks are drawing down very quickly.

*   Battery demand will be a transformational demand event.

If you have a few spare minutes take a walk down google lane and take a look at global Nickel supply and demand.

A major nickel producing company starting with G has posted one of many detailed reports outlining the state of play in the Nickel market.

To summarize here are the main points worth noting:

170 Kt Nickel shortage in 2017 as very strong demand offsets gains.

Market tightness is evident and substantial stock draw-downs from peak levels.

Significant structural supply deficits, before the contribution of battery demand becomes material.

Peak LME Nickel 5 year inventory 470 Kt , currently 17 mths supply left at a deficit rate of 170 Kt per year.

300 series stainless steel growth currently surging and using up Nickel.

Batteries:  Nickel hungry.

This is where things get really interesting:

Once you add the surging battery demand for Nickel to the current deficit who knows what is going to happen to the supply deficit.. The maths say that Nickel will be in critically tight supply..

2016 battery demand for Nickel 81 Kt.
2017 100 Kt
2018 130 Kt
2020    250 Kt
2025    500 Kt

We are indeed running out of Nickel much faster than we would like and the projections are indeed that there will be very tight supply from 2020 onwards.

This fact is reiterated by the company G in their report.

file:///C:/Users/David/Downloads/2017-11-MB-Ferroalloy-conference.pdf

Very very interesting times ahead for Nickel producers.

GLTAH