Nornickel renews contracts with the bulk of its customers for 2023

^{Photo courtesy of Norilsk Nickel Press Service}

Norilsk Nickel, the world's largest producer of nickel and palladium, has extended contracts with the majority of its customers for 2023. This news comes straight from the company's Chief Financial Officer, Sergey Malyshev, who shared the details with journalists.

"We are not giving our clients the runaround," said Malyshev. "There are no sanctions restrictions on us and our products, so we are selling them without any special discounts."

In 2022, the company charted new routes for metal supplies, reallocating volumes to Asia and partly to the Russian market. However, the CFO was quick to add that it was a bit too early to put all their eggs in one basket and completely refocus on the Asian region. "It's a bit premature to talk about a full-blown reorientation to Asia," he said.

Despite the company's efforts to find alternative routes, the reduced availability of vessels for freight and the decrease in the number of shipments for export took a toll on the rhythm of revenue generation. According to Malyshev, the revenues from metal sales in 2022 took a 6% hit due to the drop in sales volumes. "The elongated logistics chains caused a backlog, leading to a buildup of finished products in the form of inventories," he explained.

Norilsk Nickel is a diversified mining and metallurgical company with production units located in Russia, the Norilsk Industrial District, on the Kola Peninsula, and in Finland, as well as in other locations. With its commitment to renewing contracts for 2023 and its ability to weather the storm, it's clear that Norilsk Nickel is in it for the long haul.