Global Nickel Supply Set for Rare Deficit in 2026, INSG Says

The International Nickel Study Group (INSG) expects the global nickel market to record a supply deficit of 32,000 metric tons in 2026. This marks a sharp reversal from its previous forecast of a 261,000?ton surplus and stands in stark contrast to the 283,000?ton oversupply projected for 2025. It would be the first nickel deficit since 2021.

According to the INSG, the revised outlook is largely driven by changes in Indonesian mining regulations, including lower extraction quotas and a revised pricing formula covering cobalt, iron, and chromium.

Global primary nickel output remains projected at 3.715 million metric tons, down from earlier estimates. Meanwhile, consumption is expected to rise to 3.747 million metric tons, supported by expansion in the stainless steel sector, even as preferences evolve in the battery market. Recent supply chain disruptions have already forced Indonesian nickel processors to cut production by at least 10%.