Report: Norilsk Nickel mulls 10% production cut in 2023

MOSCOW, Dec 21 (PRIME) -- Russian metal giant Norilsk Nickel is considering cutting production by 10% in 2023 amid a shift away from Russian feedstock in Western countries and a potential nickel surplus in the market, Bloomberg reported late on Tuesday citing sources.

“The company has already warned some clients about the planned production cuts,” the source said.

As a result that company may go back to production levels of 2021 when it suspended operation of two mines because of floods, the agency reported.

Earlier, the London Metal Exchange decided not to impose a ban on supplies of metals from Russia. Nevertheless, some Western companies have already announced that they will abandon Russian metals, while the U.S.’ Alcoa is promoting a ban at the state level.

The U.S. last week introduced sanctions against Vladimir Potanin, who owns 35.95% of Norilsk Nickel’s shares through Interros and is also the president of the company. Aluminum giant UC RUSAL owns another 26.25%. Norilsk Nickel itself is not subject to sanctions.

End