Russian producers of copper, nickel and a number of other metals can benefit from greater involvement in the Chinese market due to the lack of broader diversification opportunities, noted Norilsk Nickel’s president Vladimir Potanin.
“We are certainly dependent on the Chinese system, but it is better to be inside this system,” he told Interfax, adding that dependence on the Chinese market could bring certain benefits, as opposed to a possible loss of market share due to a refusal to reorient the supply chain.
“If this cannot be avoided, if we cannot diversify our supplies so as not to depend on the Chinese market, then it is better to enter deeper into it and integrate,” he continues.
According to Potanin, China occupies a huge share in global consumption of a number of metals, such as copper and nickel, and more than 50% in the supply of Russian companies, including Norilsk Nickel.
Also, he said, the impact of nickel production in Indonesia and the Philippines on prices may be limited due to global supply and demand trends.
“China...is simply in a position where it can take better advantage of it. Naturally, at the expense of those who supply raw materials, that is, at ours. And therefore, it is better to be with them at this moment, to better understand what they are doing and influence it, than to observe this process from the outside,” Potanin concluded.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
