Russia’s Nornickel, one of the world’s largest producers of nickel and the largest producer of palladium, on Monday maintained its nickel production outlook for 2025 at 204,000-211,000 metric tons.
The company said it produced 42,000 tons of nickel in the first quarter of 2025, a 1.1% drop from the same period of last year, while palladium production eased 0.6% to 741,000 ounces. Production of platinum rose by 0.6% to 180,000 ounces.
“The modest decline of nickel production was temporary and due to scheduled short-term repairs and maintenance of equipment, aiming to support steady operation of main technological units,” the company’s senior vice president Alexander Popov said in a statement.
Nornickel explained the drop in the nickel production was due to maintenance works at several of its plants.
Nornickel is under pressure domestically from the rouble’s 40% rally against the US dollar, which decreases its revenues, as well as from high interest rates, which affect investment plans.
Internationally, the company is facing falling or stagnating prices for some of its metals due to lower demand amid market turbulence triggered by US President Donald Trump’s trade tariffs.
While Nornickel is not subject to direct Western sanctions, the measures have prompted some Western producers to avoid buying Russian metal, complicated payments, and restricted access to Western equipment.
“We believe that the risk of a global economic slowdown as a result of tariff wars will negatively affect the company’s metals portfolio,” BCS brokerage analysts said in a note.
(By Anastasia Lyrchikova and Gleb Bryanski; Editing by Kirsten Donovan and Ros Russell)
