Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Russian miner Norilsk Nickel (Nornickel) recorded a net profit of $5.97bn in 2019, up 95pc from $3.06bn in 2018. Higher global nickel and palladium prices boosted Nornickel’s profits. 


The company’s consolidated revenue increased by 16pc to $13.6bn amid an increase in the production of all key metals. Nornickel’s capital expenditure is forecast to be at $2.2-$2.5bn in 2020.  



China-based NPI smelter are facing disruption due to Covid-19 pandemic and the resultant shutdowns. In Indonesia, the ramp-up of new NPI capacity could also be delayed due to quarantine measures. Nornickel expects global nickel supplies to normalise in 2020 when Indonesian NPI project resume operations with additional 150,000mt nickel capacities. Although the Indonesian export ban will reduce the availability of ore feed to Chinese NPI smelters, ore inventories of 14mn mt accumulated in the country and a potential increase of ore supply from the Philippines should mitigate this negative effect in the short term.


For copper, Nornickel expects increased infrastructural investment and the rollout of next-generation 5G networks to boost demand, globally in the short term. 

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