In a preliminary view published Wednesday, the European Commission said it worries the purchase could shift low‑carbon ferronickel out of the European market and push up stainless steel prices. As the Commission put it, "Such a diversion of supply, combined with limited alternative supply sources, could adversely affect the price of low-carbon ferronickel," which it said would hit European stainless steel producers by increasing their costs.
MMG pushed back. The company says Europe is the best destination for the Brazilian material and that there is no incentive or plan to rechannel supply to China. "We are doing everything possible, including offering whatever guarantee we can to European customers directly, or to the Commission," said the company's executive general manager for corporate relations, Troy Hey.
He said the company intends to deliver to Europe at least the volumes Anglo currently provides and may be able to boost those shipments. Hey argued that blocking the deal would be counterproductive by denting investment and jobs in Brazil and by tightening nickel availability instead of fostering competition. "It has been more difficult than we thought," Hey said.
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But "we are all in on this transaction and on following it through and completing."
Anglo countered that regulators are overlooking how much ferronickel supply has grown in the past year. In an emailed comment to Bloomberg, a spokesperson said, "European customers of ferronickel benefit from competitive, diverse and increasing supply from numerous producers across Latin America, New Caledonia, South Korea, Indonesia, Japan and others," adding that "the transaction will maintain, rather than consolidate the number of suppliers."
MMG can respond formally and ask for an oral hearing, with the Commission set to deliver a final decision by Nov. 30. The Hong Kong‑listed miner, controlled by China Minmetals Corp., operates projects across Australia, Africa and South America. If it wins approval, the deal would represent MMG's initial move into nickel, centered on Anglo's Barro Alto and Codemin operations in Brazil; together they produce about 40,000 tons of nickel in ferronickel each year, and two still-undeveloped projects are part of the package. The transaction would also broaden the footprint of Chinese firms in the nickel industry, complementing existing investments in Indonesia.
For anyone watching metal prices, the takeaway is simple: Europe wants to keep a reliable stream of low‑carbon ferronickel, MMG says it plans to provide it, and regulators will decide if that plan holds water. If flows stay steady or even tick up, it could help cap stainless input costs in Europe. If not, expect more price noise.
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