Column: Funds dump copper as rising stocks dampen bull spirits
LME inventory last week touched a three-year peak.
Nornickel, the world’s largest producer of palladium and a major producer of refined nickel, reported on Monday a 1% drop in nickel output for the first half of the year, but kept its 2024 production guidance for both metals.
The company said in a statement its full-year nickel production forecast remained at 184,000-194,000 metric tons, compared with 209,000 in 2023. It kept its 2024 palladium production guidance at 2.296-2.451 million ounces.
Nornickel said the dip in first-half nickel output was due to furnace repairs at its Nadezhda smelter.
“Upon completion, combined with the overhaul of the converter electric furnace and peripheral equipment, the reliability of industrial assets will be improved,” Chief Operations Officer Alexander Popov said in the statement.
Nornickel is not subject to direct Western sanctions, but some Western companies are avoiding dealing with it.
That has hampered the company. For example, it had to postpone 30 billion roubles ($347 million) of repairs for two years as it struggled to source equipment and technology previously provided by Western companies.
The repaired furnace will return to operation in early August, suggesting Nornickel has found ways to overcome the problem. It did not disclose its new equipment suppliers.
In April, the United States and Britain banned their metal-trading exchanges from accepting new nickel, aluminium and copper produced by Russia and barred imports of the metals to try to disrupt Russia’s export revenues.
Nornickel said this would further increase price volatility and supply uncertainty, but pledged to fulfil all its contractual obligations.
Like many other Russian companies, Nornickel is pivoting to China and other non-Western countries in search of technology and new markets for its products.
The company is in talks to move its copper smelting to China, to build a nickel plant for the battery sector in China, and plans to build a platinum group metals refinery in Bahrain.
Nornickel said its palladium production was little changed in the first six month of 2024, while platinum output fell 3%.
($1 = 86.4000 roubles)
(Reporting by Gleb Bryanski)
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