Goldman Sachs Group Inc. cut its forecast for nickel prices, saying demand shocks in Europe and rising supply from Indonesia and Russia will lead to a nickel surplus that will last until 2023. The bank lowered its average price forecast for 2023 to $18,500 per ton from $28,625 previously, analysts including Nicholas Snowdon wrote in an email.
The impact on the broader market was muted by a sudden negative shock to Euro nickel demand. European demand is expected to fall 30 per cent year on year for the rest of this year and in 2023.
The rapid growth of nickel pig iron production in Indonesia poses an imminent threat to the supply of primary nickel market.
Russian nickel supplies have remained strong in the wake of Ukraine's invasion.
The bank expects nickel prices to reach $16,000/ $18,000/ $20,000 respectively over the next 3/6/12 months
The medium - to long-term outlook for nickel remains very strong, with demand underpinned by rising demand for electric vehicles and batteries.
