1、 Watchlist the stock on Insights Direct to receive prompt updates Watchlist the stock on Insights Direct to receive prompt updates ed:PJ/sa:WS,PY,CS View our full dataView our full data-driven analysis and more driven analysis and more atat DBS Insights DirectDBS Insights Direct Oversold sector Over

2、sold sector at oversupply at oversupply but but earnings recovery aheadearnings recovery ahead Global nickel demand growth to decelerate in 2025 Global nickel demand growth to decelerate in 2025 mainly due to weaker demand from stainless steelmainly due to weaker demand from stainless steel Higher g

3、lobal nickel supply in 2025 backed by Higher global nickel supply in 2025 backed by capacity expansion and ramping of new plantscapacity expansion and ramping of new plants However,However,earnings recovery is expected on the back earnings recovery is expected on the back of operational recovery and

4、 sales volume growthof operational recovery and sales volume growth Sector oversoldSector oversold;NCKLNCKL to remain to remain as as our top pickour top pick Nickel market surplus to widen in 2025 Nickel market surplus to widen in 2025 before narrowing before narrowing in 2026in 2026.The global nic

5、kel market is set to expand its surplus to 376k tonnes in 2025(from 268k tonnes in 2024)before being reduced to 298k tonnes in 2026.This is because refined nickel supply growth,backed by capacity expansion in Indonesia,is likely to overwhelm nickel demand growth in 2025.Despite this,we forecast the

6、average LME nickel price to increase 4.1%y/y to USD17,500/tonne in 2025 and continue to rise to USD18,500/tonne in 2026 as current nickel prices are below median cash cost.This will ultimately reduce nickel supply by exiling less cost competitive players from the market.Earnings recovery Earnings re