PERTH (miningweekly.com) – Global financial services provider Macquarie Group has called for investment into the nickel sector, despite an anticipated oversupply in the near-term.
Speaking at the Paydirt Nickel conference, in Perth, Macquarie consultant Jim Lennon said that immediate investment in the nickel sector would be required to meet the potential “explosive” demand post 2025.
“Covid-19 has obviously had a negative impact on the supply/demand fundamentals for nickel, with the market shifting from a deficit to a surplus, and these conditions could last for a few years,” Lennon said.
The Covid-19 pandemic resulted in a sharp decline in primary nickel consumption, while the first quarter of the year also saw a decline in nickel production, which Lennon said was likely owing to Covid-related disruptions in Madagascar and the Philippines.
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