Rebound in nickel output expected in 2025 with end of La Niña
Local nickel production is expected to recover next year following a period of slowdown and falling prices, according to the Philippine Nickel Industry Association (PNIA).
PNIA president Dante Bravo said the group was anticipating a rebound in 2025 with the end of the La Niña phenomenon, which usually floods mines that make it difficult to extract minerals.
Last month, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (Pagasa) said there was a 71-percent chance of La Niña forming in September to November and that it would persist until the first quarter of 2025.
Bravo said this year’s nickel output was expected to fall short of expected targets as some companies were forced to halt production due to inclement weather.
Even though the nickel sector’s performance “is slightly better than last year,” Bravo said they do not expect its overall performance to improve in 2024, “with the low price of metal due to low demand from China and with Indonesia eating up most of the global demand.”
Data from the Mines and Geosciences Bureau showed that metal output rose by 4.79 percent to P249.05 billion in 2023, buoyed by the “positive showing” of gold and nickel ore.
The MGB also reported the country’s metallic production dropped by 6.69 percent to P114.77 billion in the first half of 2024, owing to the decline in the output of gold and nickel ore, along with processed products mixed sulfide and scandium oxalate.
Nickel prices decreased by 27.67 percent to $7.94 per pound in the first semester of this year, the MGB noted.
Bravo, who is also the president of listed Global Ferronickel Holdings Inc., expressed confidence the nickel sector would “see through the challenges” as the group hoped for “a better policy and continued government support,” particularly in instituting a competitive fiscal regime and a more stable policy environment.
Bravo also said companies should adjust to the volatile market and connect with end-users to overcome the challenges.
He said a boom in electric vehicle production should lead to a “sharp increase” in demand for transition metals or malleable and ductile metals used in the conduction of heat or electricity, such as nickel. The latter is particularly used for manufacturing lithium-ion batteries in e-vehicles.
