Norilsk Nickel and UC Rusal fix metal prices in Russia

After the Ministry of Industry and Trade recommended that metallurgists set "transparent" prices on the domestic market, Norilsk Nickel, one of the world's largest nickel producers, announced that it fixed them at the level of February prices. This was told to RBC by Vice President - Head of the Sales and Commerce Block of the company Anton Berlin.

The average price of nickel futures in February with delivery in three months at the London Metal Exchange (LME) was $23.6 thousand per ton. Since the beginning of the year, nickel prices have risen by more than 40%, with the main increase in late February and the first days of March against the backdrop of Western sanctions against the Russian financial sector and logistical difficulties with the supply of export products from Russia. At the moment (March 7–8), the price of the futures more than tripled, above $100,000 per ton. In the same period, there was a devaluation of the ruble - the dollar exchange rate from the levels of 80-85 rubles. February 23-25 ​​rose to 120 rubles. 9th of March. Below the bar of 100 rubles. it sank only on 23 March.

How nickel prices will now be calculated

Previously, the company's prices for Russian buyers were pegged to the LME nickel quotes (average monthly price multiplied by the ruble exchange rate on the payment or invoice date; transportation costs were added to this base price). “We have always perceived Russia as part of the world market, so our pricing was the same as abroad, only prices are in rubles,” Berlin explained.

Now, instead of a formulaic approach, Norilsk Nickel will use a fixed price, which represents the average metal prices in February for Russian consumers. This price is fixed for the next three months - from March to May inclusive.