Finance
Nornickel Says Higher Prices Offset Increased Costs, Delivery Times From Iran War
Published by Global Banking & Finance Review®
Posted on April 17, 2026
3 min readLast updated: April 17, 2026
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Nornickel reports that the Iran war has added about three weeks to sea delivery times and raised freight costs due to logistical disruptions via the Strait of Hormuz and Suez Canal. However, surging base metal prices have offset these added expenses, and demand remains broadly stable.
Nornickel says higher prices offset increased costs, delivery times from Iran war
Impact of Iran War on Nornickel's Operations and Market Response
(Corrects reference to hub in Tangier in paragraph 8)
Logistical Disruptions and Cost Increases
MOSCOW, April 17 (Reuters) - Russian metals producer Nornickel said the Iran war has extended delivery times for its base metals exports by about three weeks and increased freight costs, but higher metal prices offset the extra expenses.
U.S. and Israeli strikes on Iran since late February have caused major logistical disruptions, paralysing shipments through the Strait of Hormuz and creating risks for shipping through the Suez Canal.
Changes in Shipping Routes
Nornickel ships base metals by sea, from Murmansk to the ports of Tangier and Rotterdam and onwards to customers in the Americas, Asia and Europe. The company has stopped using the Suez Canal and is routing cargoes around Africa, Anton Berlin, head of sales and Nornickel's vice president, said.
"Previously, the base metals we shipped by sea went either through the Suez Canal or around Africa, depending on the political situation. Now they go only around Africa," Berlin told reporters.
"This creates some logistical inconvenience, but nothing critical,” he added.
Temporary Easing of Strait of Hormuz Restrictions
Berlin made his remarks before Iran's foreign minister said that passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remainder of a truce between Israeli forces and Iran-backed Hezbollah.
Market Demand and Strategic Adjustments
Berlin also said demand in the base metals market is broadly unchanged from levels seen before tensions escalated in the Middle East.
Shift in Export Hubs and Infrastructure Investments
After sanctions were imposed on Russia, Nornickel said it planned to sharply reduce shipments via Rotterdam in favour of the hub in Tangier.
The company is considering investments in port infrastructure in the Middle East, Turkey and Morocco to reduce its reliance on European ports, Nornickel main shareholder Vladimir Potanin said last year.
Sanctions and Supply Chain Reorientation
Nornickel, the world’s largest producer of palladium and a major supplier of nickel and copper, has not been directly targeted by Western sanctions but has faced voluntary restrictions from partners, as well as logistical and payment difficulties.
In response, the company has reoriented its supply chains towards Asia.
Sales Distribution by Region
Berlin said around 50% of Nornickel’s sales go to China, about 15% to Russia and roughly 5% to the United States. The remaining volumes are shipped to Europe, North Africa, the Middle East and other Asian markets.
(Reporting by Anastasia Lyrchikova. Editing by Jane Merriman)
Key Takeaways
- •Shipping from Murmansk now bypasses the Suez via Africa, adding delays and costs, but remains manageable and non-critical.
- •Global disruptions—Strait of Hormuz closure, insurance surcharges, and rerouting—have raised freight costs significantly, yet higher commodity prices cushion Nornickel’s margin strain.
- •Despite rerouting and geopolitical tensions, Nornickel’s demand profile is steady, with Asia (notably China) accounting for ~50% of sales, reinforcing its strategic market focus.
Frequently Asked Questions about Nornickel says higher prices offset increased costs, delivery times from Iran war
1How has the Iran war affected Nornickel's metal exports?
The Iran war has increased delivery times for Nornickel's base metals exports by about three weeks and raised freight costs due to routing changes.
2What shipping route changes has Nornickel implemented?
Nornickel has stopped using the Suez Canal and now ships all sea cargoes around Africa to avoid current regional risks.
3Have higher metal prices compensated for increased costs?
Yes, higher metal prices have offset the extra expenses caused by increased freight costs and longer delivery times.
4What regions are Nornickel's major sales markets?
About 50% of sales go to China, 15% to Russia, 5% to the US, and the remainder to Europe, North Africa, the Middle East, and other Asian markets.
5Has demand for Nornickel's base metals changed due to Middle East tensions?
Demand in the base metals market remains broadly unchanged, according to Nornickel.
