Nornickel lifts 2022 nickel plate premium to China

Russian metals producer Nornickel has signed 2022 nickel plate supplies with Chinese buyers at $220-290/t. This was an increase from around $150/t for supplies this year, delegates at the 2021 Nickel and Cobalt Annual Conference held by information provider Antaike over 1-4 November told Argus.

Nornickel had signed the supply contracts with four buyers from China, market participants said, comprising Baosteel Resources, Macrolink Group, Citic Metal and China Ordins Group.

"The premiums Nornickel agreed with Baosteel, Citic Metal and China Ordins are in the range of $220-250/t with monthly supply to Citic Metal at 100t and Baosteel at 300t. The premium to Macrolink is about $290/t for 200t per month's supply," a source with direct knowledge of the matter told Argus.

"Nornickel's 2022 shipments of nickel plate to China will be in line with 2021, but lower than 2020 due to the production disruptions at Oktyabrsky and Taimyrsky mines in 2021," another participant said.

Nickel output at Nornickel during January-September totalled 129,858t, 23pc lower than 167,753t in the same period 2020. There was a temporary suspension of mining operations and subsequent restoration works at the Oktyabrsky and Taimyrsky mines following flooding caused by the inflow of groundwater, as well as the temporary suspension of the Norilsk Concentrator and consequent repairs.

Operations at the Oktyabrsky and Taimyrsky mines were suspended on 24 February and Oktyabrsky resumed production in mid-May. Taimyrsky has been running at 85pc capacity since resuming operations in early June and is expected to return to full capacity by the start of December.