CORRECTED-Nornickel says higher prices offset increased costs, delivery times from Iran war

MOSCOW, April 17 (Reuters) - Russian metals producer Nornickel GMNN.MM 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.

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.

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.

Berlin also said demand in the base metals market is broadly unchanged from levels seen before tensions escalated in the Middle East.

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.

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.

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.