Global metals prices are likely to remain low in the medium term as it could take years for producers to run out of financing for loss-making assets, the deputy CEO of Norilsk Nickel, the world’s No 1 nickel and palladium producer, told Reuters. Prices for nickel, a stainless steel ingredient, fell 40% in 2015 on the London Metal Exchange and continue to decline this year due to an over-supplied market. Copper is also trading near its lowest level since 2009.

About 70% of global nickel producers are currently loss-making, but Russia’s Norilsk remains profitable thanks to its low costs, Pavel Fedorov said in a phone interview on Wednesday. Norilsk, part-owned by tycoon Vladimir Potanin and aluminium producer Rusal, mines its metals from nickel/copper/palladium deposits in Russia’s Arctic and usually says that, as one of the world’s lowest-cost nickel producers, it would be the last one to leave the market. The continuing weakening of the rouble, which hit an all-time low against the dollar on Wednesday due to declining oil prices, is also supporting the company. Of course it helps – about 80% of our costs are in roubles – but the rouble dunamic does not compensate for more than a 30% fall in metals prices on global markets since August, Fedorov said.

He added Norilsk could put decisions on new long-term projects on hold due to the recent decline in metals prices, but its strategy would not see significant changes. When asked about the company’s financial performance for the second half of 2015, Fedorov said market conditions were not the best and that Norilsk had accumulated some product and raw materials reserves ahead of the planned closure of its 74-year-old nickel plant in the city of Norilsk in the second quarter. He did not provide details on these reserves.

• [Editor:Juan]