The International Nickel Study Group (INSG) said that global nickel production will exceed demand next year, reaching a surplus of 239,000 tons, which will be the third consecutive year of oversupply and it will be the largest yet.

The cumulative forecast surplus over three years totaled 566,000 tons. The global consumption was expected to reach 3.2 million tons this year.

According to statistics from the INSG, Indonesia’s mined nickel production rose by 31% year on year in the first seven months of this year. China was also a reason for the increase in global nickel output. China’s primary nickel production was up by 18% year on year in the January-July period.

The INSG expected that the stainless steel industry would recover in the second half of this year. Besides, the nickel consumption used in electric vehicle (EV) batteries will grow. The usage was expected to rise by 8% this year and another 9% in 2024, which will make up for the downturn in the stainless steel industry.