Russia's Nornickel, the leading global producer of palladium and a major refined nickel supplier, announced a 1% decline in nickel production for the first half of 2024. Despite this drop, the company has maintained its full-year production forecasts for both metals.

Nornickel's nickel production forecast remains between 184,000 and 194,000 metric tons for 2024, down from 209,000 metric tons in 2023. The full-year palladium production guidance remains at 2.296 to 2.451 million ounces. The decline in nickel output was attributed to furnace repairs at the Nadezhda smelter. Completion of these repairs is expected to enhance industrial asset reliability.

Nornickel itself is not directly affected by Western sanctions, but many Western companies are choosing to avoid business with the firm. Therefore, this has caused difficulties for the company, including a two-year delay in 30 billion roubles worth of repairs due to challenges in sourcing equipment and technology that were previously supplied by Western firms.

Nornickel is pivoting to China and other non-Western markets for new opportunities, including plans for new smelting and refining projects in China and Bahrain. Despite increased price volatility and supply uncertainties, Nornickel remains committed to fulfilling its contractual obligations.