Corona Virus Hits Metal Industry, NorNickel Reducing Income Goals
Highnorthnews - 2019 became another record year for the Russian industrial giant NorNickel, world leader in production of nickel, palladium and also a giant in copper and platinum.
Late February, the company announced that last year’s income increased by 16 percent compared to the year before. Production has increased, as has prices on nickel and palladium.
The operating result reached a whopping USD 7.9 billion.
Drop in demand
The company a.o. operates nickel extraction on the Kola Peninsula and is owner of the very polluting Nikel plant, just a few kilometers from the Norwegian border.
However, NorNickel is now reducing its own expected prognosis for 2020 due to the outbreak of the corona virus in China, or the covid-19 as it is also referred to.
Demand has dropped for several metals, such as nickel and copper. Nickel is, amongst others, used to producing batteries, whereas copper is important in IT and the communications industry.
Due to insecurities related to the duration of the epidemic and the final health effect thereof, we are at present not able to quantify its effect on the demand for and supply of copper, nor can we estimate how long it will take the market to recover, says NorNickel in a statement.
The company further announces that if the virus outbreak is under control by the end of March, it is fair to assume that “the loss in consumption can be recovered within the year, given that China has ample capacity available in the entire copper-demanding value chain”, Reuters says.