His opinion on the current situation on the market of non-ferrous metals was expressed by Vladimir Potanin. According to General Director of «Norilsk Nickel» the current situation is reminiscent of the mortgage lending 2008. At the time its structure was like a pyramid. Apparently, the cost of Nickel and copper over a long period is unstable. It is likely that the copper market will begin to experience a shortage of metal.
The situation, however, is understandable. To date, the normal ratio between the consumption and supply is clearly violated. This ratio regulates the value of the metals. That until this «imbalance», it is due to the multiple financial transactions with metals. Pyramids, such as those that were built in 2008 and is now established in the market of nonferrous metals. To dismantle them is rather problematic and long. Thus, rush to the markets secured. Now it is time for unprofitable producers of the metal. It is important that such companies have realized the fallacy of the process and stopped production. Only then can we observe the stabilization of the cost. Under these circumstances, the representatives of «Norilsk Nickel» is not devoid of humor. They believe that the flood that their company will die last. That to the cost of metals, it is necessary to prepare for the worst, not losing hope for the best. According to V. Potanin, the Russian Corporation is building a behavior model on a conservative scenario. Take into account the possibility that prices have not only not improved, but worsen.
General Director of Norilsk Nickel believes that the company’s profit this year will decline. What is surprising on the background of General fall in prices. Analysts predict low — value non-ferrous metals throughout 2016. There is no certainty in any improvements, hence the similar pessimistic expectations. The price of Nickel on the LME are extremely low, given the slowdown in China. China is a major consumer of the metal. From January 2015 the price of Nickel dropped by 40%. In 2015, the financial results of Russian companies has worsened.
Another news from Norilsk Nickel is a complete halt in the roasting and smelting shop of the Nickel plant. Project closure created in the framework of the program aimed at the preservation of the environment. Operation Nickel production started in 1942. Every year the atmosphere had been 380000 tons of sulfur dioxide. Legacy of power was not allowed to dispose of them. Hence the decision on the construction of new plants capture sulfur dioxide.