The London Metal Exchange (LME) announced today that it is suspending deliveries of nickel products from the Finland-based refinery owned by Russia's Norilsk Nickel (Nornickel), affecting current primary nickel brands Norilsk Nickel Harjavalta Cathodes and Norilsk Nickel Harjavalta Briquettes.
In two separate members' notices, the LME said nickel cathodes and briquettes from Nornickel's Harjavalta plant will only be allowed to be delivered and warranted into its network of warehouses until 2 October.
The LME said in both notices "if warrants are cancelled on or after 3 October 2024, it will not be possible to place the metal back on warrant, either at the same warehouse company or another warehouse company".
Traders surveyed by Argus today said that the LME's decision was likely driven by Harjavalta's non-compliance with its listing rules. The LME has made its responsible sourcing rules stricter this year, which has led to the suspension of several brands across the industrial metals space.
Traders also played down the impact of the suspension on the nickel market, including spot and term premiums. They said Harjavalta briquette trade would not fundamentally change based on its LME affiliation, while cathode products formed a relatively small proportion of the European market.
"The only big question for the briquette market is whether BHP will shut down," a trader said.
Harjavalta has a nickel capacity of 66,000 t/yr, according to Nornickel.
