LISTED Nickel Asia Corp. (NAC) said it expects upward pressure on nickel prices due to potential supply constraints amid rising demand from the stainless steel and electric vehicle sectors.

“Nickel supply visibility beyond 2027 is limited, considering the availability of ore supply, regulatory challenges, and execution risks of processing projects,” the company said in a report released late Wednesday.

NAC earlier said its revenues from ore sales declined by 8.5% to P19.56 billion from P21.38 billion last year, due to lower ore prices, which declined 14% to $20.04 per wet metric ton (WMT) from $23.30 per WMT.

Global nickel production is projected to grow by 3.8% in 2025, while consumption is expected to rise by 5% to 3.514 million tons, driven primarily by demand for stainless steel and renewable energy, according to a recent analysis by the Philippine Nickel Industry Association (PNIA).

It said nickel prices, which recently hit a four-year low, would likely average $16,750 per ton in 2025, with potential spikes to $20,000 early in the year.

Among the challenges that the industry is monitoring are China’s slowdown in stainless steel production and the shift to lithium iron phosphate batteries, which threaten the role of nickel-based batteries in electric vehicles.

Geopolitical risks in major producers like Indonesia and the Philippines may disrupt market stability, according to PNIA.

NAC and DMCI Mining on Wednesday said they had signed a memorandum of understanding “to explore the feasibility of developing and operating a nickel processing plant in the Philippines.”

NAC said it is still in the process of determining the equity structure of the potential joint venture entity for the plant’s development and operation. — Kyle Aristophere T. Atienza