Russia increased supplies of platinum to China by almost 300 times

According to the General Administration of Customs of China , in January-February 2023, imports of platinum from Russia to China increased by 279 times compared to the same period last year in physical terms (from 5.99 kg to 1.67 tons), in monetary terms - 265 times (from $0.2 million to $53 million). The volume of palladium supplies increased 8.5 times (from 0.32 tons to 2.72 tons), in money terms - 5.6 times (from $27 million to $152 million).

Supplies of another platinum group metal, rhodium, which, like palladium, is used in the production of catalysts for various purposes, increased sevenfold in physical terms (from 26.2 kg to 0.19 tons), in money terms - six times (from $13 million to $76 million), follows from Chinese customs data.

At the same time, in 2022, supplies of Russian platinum to China fell by 33%, to 8.99 tons (in monetary terms, a reduction by almost half, to $280.1 million), while palladium and rhodium increased by 43%, to 9.03 tons. (in money terms, an increase of 23.6%, to $583.8 million) and 67%, to 0.52 tons (an increase of 13%, to $238.5 million), respectively. The Federal Customs Service (FCS) of Russia stopped publishing statistics on exports and imports after the start of a military special operation in Ukraine and the imposition of Western sanctions.

Russia holds 40% of the global palladium market. The largest Russian producer of platinum group metals is Norilsk Nickel. The company's press service declined to comment on China's customs statistics. “With regard to the dynamics of the company's metals supplies or plans to increase supplies, this information is commercially sensitive and we cannot disclose it,” they explained.

The largest co-owner and president of Norilsk Nickel, Vladimir Potanin, back in July 2022, said in an interview with RBC that due to Western sanctions against Russian companies and goods that do not directly relate to the manufacturer (in December 2022, the United States imposed sanctionsagainst Potanin, but they do not apply to Norilsk Nickel, because he is not a controlling shareholder), he is forced to redirect part of his supplies to the markets of Asia and other friendly countries. “In order to fight this sanctions headwind, as I have repeatedly said, we need the so-called plan B, that is, the reorientation of our supplies, our partnerships to the so-called friendly countries,” the businessman said. An alternative supply chain is being built through the port of Tangier in Morocco, he said. They are mainly aimed at deliveries to China and the markets of Southeast Asia. Despite the fact that it will be more expensive for the company than to Europe, it will begin to reorganize into these markets with more comfortable conditions.

Until last year, Europe and the US accounted for more than two-thirds of Norilsk Nickel's palladium shipments. But after the exclusion of Russian refineries, which the company uses to process its raw materials into refined palladium, from the listing of the London Association of Platinum Group Metals (LPPM) in April 2022, they were forced to redirect part of the supplies to other countries, said in a review of a major global manufacturer of autocatalysts Johnson Matthew.

Norilsk Nickel's metal sales revenue fell by 6% last year to $16.7 billion, but Asia's share of total revenue rose from 27% to 31%. The share of Europe decreased from 53% to 47%, while the share of South and North America remained at the level of 15%.