When it comes to metals prices, GMK Norilsk Nickel is preparing for the worst. The Russian company that vies with Vale as the biggest producer is budgeting for an average of about $9000 a metric ton in 2016, said two people familiar with the situation. The figure is 24% lower than the average rate of $11890 a ton in 2015, and shows Norilsk is planning for the possibility that prices for the metal will fail to recover after plunging by 47% in the past year to the lowest level since 2003. The board approved the price for its basic 2016 financial plan last month, said the people, declining to be identified as the information is private. It’s about 10% above nickel for three-month delivery of $8165 a ton on the London Metal Exchange. Mongan Stanley forecast a average price of 10692 a ton in a report December 15. Norisk traditionally has a conservative approach to forecasts in its annual budget planning, the company’s press servise said on Tuesday without disclosing the price. Nickel was the worst-performing main metal on the LME in 2015. About 69% of the nickel industry’s capacity was unprofitable as of the end of November, with only 8% of those facilities expected to close by the end of the year, Norilsk said at the time. Chief executive officer Vladimir Potanin also warned December 17 that the rout may deepen. Norilsk’s price forecast is somewhat above spot, George Buzhenitsa, an analyst at Deutsche Bank. It shows management sees limited price recovery in the near-term. A weaker ruble and cheaper costs from mining sulfide ores in Russia are helping Norilsk to remain profitable, even as the global price rout curbs its earnings prospects. Earnings before interest, taxes, depreciation and amortization may fall more $1 billion in 2016, Buzhenitsa said. Ebitda is seen at $4.7 billion by six analysts surveyed by Bloomberg.

• [Editor:Juan]