Palladium shipments by Norilsk Nickel face disruptions due to air travel bans for Russia – media

(INTERFAX) — Deliveries of palladium by Norilsk Nickel (MOEX: GMKN), the world's largest producer of this metal, are facing interruptions due to air travel bans, according to Bloomberg.
Palladium, which is mainly used in car catalytic converters, is usually transported by passenger aircraft. With much of Europe's airspace closed to flights from Russia, mining companies such as Norilsk Nickel are exploring alternative routes to supply customers, a source familiar with the matter said.
Norilsk Nickel accounts for 40% of world palladium production. The share of palladium in Norilsk Nickel's revenue is also about 40%.
Amid concerns about a shortage of the metal, palladium futures are up 6% on Monday (the metal has risen in price by 30% since the beginning of the year), to $2,500 an ounce.
According to Nikos Kavalis, managing director of Metals Focus Ltd, quoted by Bloomberg, ways to overcome these frictions in trading will appear over time. These may be more complex routes, deliveries to China or other countries.
Disruptions in palladium exports also occurred during the pandemic. Then Norilsk Nickel was forced to charter aircraft for export due to the fact that passenger flights were suspended. The main consumer of Russian palladium is the German company BASF, which uses it to produce autocatalysts.
“Our activities are going on as usual, we continue to fulfill all our contractual obligations to our customers and partners,” said a spokesperson for Norilsk Nickel.