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Russian nickel company experiencing economic difficulties

In response to falling stock prices for nickel, the Russian company-producers of this metal are in a difficult socio-economic situation. In particular, the management of two companies belonging to the Moscow Industrial Metallurgical Holding, announced that the company is currently close to stopping power. We are talking about joint-stock company «Ufaleynickel» (Verkhny Ufaley, Chelyabinsk region) and CJSC «Rezhnikel» (Rezh, Sverdlovsk region).

nickel ton cost of production is about $ 20 thousand., whereas after 20 percent of September the collapse of stock prices, the cost of tons of nickel is around 17 thousand. dollars. companies listed above have not yet had time to «recover» after the economic recession of 2008, and even without the latter worked falling quotes with negative financial results.

The leadership of both companies see the output of nickel in the modernization of production in order to optimize expenditure, which, of course, will require considerable investment. For this reason, management «Ufaleynickel» and «Rezhnikel» does not exclude the possibility of selling part of the assets of metallurgical plants.

Market analysts believe that if these companies will be put on sale, as the buyer may well address the owners of «Norilsk nickel».

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