Production and sales

Product range

One of the Company’s objectives is to make sure its product range is in line with the current and prospective metals demand.

Over the last three years, Nornickel increased nickel supplies to segments other than stainless steel production by 32% (the 2017 supplies exceeded 100 kt of nickel), which was achieved by leveraging a focus strategy to boost sales to Chinese and Russian alloy and special steels makers, as well as by strengthening positions on China's electroplating market through the product range optimisation and extensive customer training. The Company also fostered cooperation with world-leading companies in the batteries segment.

Norilsk Nickel Harjavalta is considered one of world’s foremost producers of nickel used to make precursors (semi-products essential for manufacturing the cathode material that forms part of batteries). Norilsk Nickel Harjavalta is uniquely flexible when it comes to manufacturing, which enables it to factor in consumer preferences in developing its product portfolio.

Norilsk Nickel Harjavalta's nickel sulphate is rightly considered the industry benchmark and is widely used in battery manufacturing. The Company plans to proactively market briquettes, which are traditionally supplied to stainless steel manufacturers, among battery and precursor producers.

In response to strong growth of demand by battery manufacturers, the Company is upgrading its nickel powder packaging capacities in order to broaden the range of packages and create individual solutions based on consumer preferences.

The Company considers joint ventures to produce nickel- and cobalt-bearing value-added products for the battery segment to be a promising direction for expanding the product range and increasing production volumes.

● Copper ● Tellurium, Selenium ● Sulfur ● Nickel, Cobalt ● Copper ● Sodium sulfate and chloride ● Sulfuric acid ● Nickel ● Cobalt ● Platinum, Palladium ● Iridium, Rhodium ● Ruthenium ● Silver, Gold

Sales strategy

Sales, along with production, have traditionally been a key value adding line of Nornickel’s business.

When it comes to nickel products, the sales strategy focuses on achieving a balance between supplies to stainless steel manufacturers and to other industries.

As the world’s largest producer of palladium, the Company continues to implement the strategy of entering into direct long-term contracts with end consumers to ensure sustainable and strong demand for platinum group metals.

One of Nornickel’s priorities is stable supply amid the growing demand for PGM:

• The Company refused to launch a marketing programme aimed at promotion of palladium in jewellery manufacturing in order to make it clear to the market that it intends to focus on supplying palladium for the automotive industry;
• In 2016, the Company established the Global Palladium Fund (GPF). In 2017, the GPF built Pd reserves of around 0.55 mln oz to safeguard supplies for the increasing demand from key consumers that are the Company’s customers in 2018 and onwards (mostly from the automotive industry). The reserves were formed from purchases of metal from third parties and the Company itself in accordance with consumer requirements to the product range.

To boost sales premiums and liquidity, Norilsk Nickel registers its products on the world’s major exchanges, including the London Metal Exchange and Shanghai Futures Exchange.