Norilsk Nickel offers to deal with the surplus of metal by reducing production

One of the world's largest metal manufacturers of Norilsk Nickel GMC called the world's manufacturers of Nickel to begin to reduce the number of unprofitable operations in order to reduce the excess of this metal that leads to the drop in the market prices and, accordingly, to the losses of all metallurgical companies.

The financial losses that were observed in each of the quarters this year should push the company to reduce production, which will reduce the nickel surplus by 30 percent to 70 thousand tons in 2014 - this is what Anton Berlin, the marketing director of Normatimpex CJSC, which is one of the Norilsk Nickel divisions. This year, the surplus of this metal amounted to 100 thousand tons.

Nickel, used in the manufacture of stainless steel, fell in price in the "bear market" back in May, in total the cost of this metal per year was reduced three times. The reason for this was not only a decrease in demand for nickel, but also an increase in China production of its cheaper “substitute”, obtained from low -quality ores.

“Unfortunately, we do not see significant changes in the nickel market compared to the situation that we observed at the beginning of the year,” Anton Berlin said in an interview. “From 35 to 40 percent of metal manufacturers are still unprofitable, and the gap between demand and supply remains rather large,” Berlin added.

At the beginning of today, Nickel traded at the level of $ 13887 per ton at the London Exchange, this is 19 percent less than last year, this indicator is the worst among all industrial metals.