MOSCOW, May 23. /TASS/. Norilsk Nickel, the world’s largest producer of palladium and high-grade nickel, continues to supply metals in accordance with contracts, the company said in its review of markets of nickel and platinum group of metals.
“Nornickel confirms its production guidance for 2022 and continues to deliver metals according to its contract obligations despite logistic obstacles associated with the limited availability of international flights,” the company said.
“The 2022 nickel market is currently expected to be in a mild surplus of around 40,000 tonnes and mostly in low-grade nickel. It leaves our previous forecast virtually unchanged,” according to the review.
“In our base case scenario, we expect the 2022 primary nickel demand growth to slow down to +11% at 3.17 million tonnes as opposed to the 2021 increase of 17%, reflecting the current price environment,” the company said.
Norilsk Nickel expects global palladium demand to rise by 3% to 10.3 million ounces in 2022 mainly on the back of a partial automotive sector recovery from the low base of 2021.
“In 2023, we expect palladium market to stay in balance, as the automotive demand recovery to be mostly offset by rise in secondary supply,” the company said.
“A 16% increase in 2023 nickel supply is anticipated to outpace the growing demand from the stainless steel and battery sectors, with the primary nickel use rising by 14% year-on-year,” according to the review.
However, higher uptake in stainless steel and electric vehicle production can lead to a larger increase in nickel demand, while the ramp-up of Indonesian nickel pig iron capacities and other projects across the globe could underperform again, the company noted.
Norilsk Nickel is a diversified mining and metals company, the world’s largest producer of palladium and high-grade nickel. The production divisions of the Norilsk Nickel group of companies are located in Russia in the Norilsk industrial region, on the Kola Peninsula and in the Trans-Baikal Territory, as well as in Finland.
The main shareholders of Norilsk Nickel are Vladimir Potanin’s Interros (owns 35.95% of the shares) and Rusal, founded by Oleg Deripaska (26.25% of the shares).