Chinese Support Measures Lift Metal Markets, Nickel Output at Nornickel Declines in Q2

China’s Politburo meeting brought some optimism back into metal markets with the promise of additional support measures for the property sector. However, a stronger dollar capped the rally, while the market still needs to see what actual policies the government announces. Signs of weakening in European manufacturing further weighed on market sentiment yesterday.
Nickel output at Nornickel fell 4% quarter-on-quarter to 45kt in the second quarter, while cumulative production was down 9% year-on-year at 91kt in the first half of the year. The decline in output was primarily due to planned repair work at the Nadezhda metallurgical plant and a grinding mill at the Talnakh concentrator in the first quarter. The company expects production guidance for nickel at 204kt-214kt for 2023. Among other metals, copper output fell by 13% QoQ to 94.89kt, while palladium production increased by 6% QoQ to 761koz in the second quarter of the year.