Metal Information Center

Axel Johnson to sell Soviet metals - Axel Johnson Trade A.B.; nickel, cobalt and copper

October 9, 2007 – 4:55 am

Soviet nickel, cobalt and copper will be marketed in Western Europe by Sweden’s Axel Johnson Resources AB, Johnson announced Tuesday.

Norilsk Nikel, the Soviet state-owned metals producer which has sold Western Europe an estimated 35,000 to 40,000 tons of nickel annually through various brokers, will deal exclusively through Axel Johnson, said Dag Bjurstrom, managing director, in a telephone interview yesterday.

Bjurstrom will be chairman of a new joint-venture unit to be based in London and staffed by four Soviets selected by Norilsk Nikel. He said the announcement of a president to oversee day-to-day operations is forthcoming as is the joint venture’s name.

No stranger to buying Soviet nickel–Axel Johnson is affiliated with Sweden’s Avesta, the stainless steel giant which “for years” has used Soviet nickel extensively–Bjurstrom said he anticipates negotiating annual contracts with various European stainless producers over the next two months.

Copper and cobalt, meanwhile, will be handled but to a lesser degree. Bjurstrom said Soviet internal demand for copper is on the upswing and export availability will be less than in the past. Soviet copper cathode exports probably haven’t exceeded 35,000 tons annually, he said