Nickel prices surged to a five-week high on Thursday, driven by Indonesia’s announcement of a crackdown on a major ore trader. The benchmark three-month nickel contract on the London Metal Exchange climbed 3.8% to $16,375 per metric ton, reaching a session peak of $16,415, the highest since September 25. The Indonesian forestry task force targeted companies linked to businessman Arif Kurniawan for alleged illegal operations in forest areas, raising concerns about potential supply disruptions.
Indonesia’s nickel producers have faced rising costs and stricter mining quotas this year, with Macquarie analysts predicting a 6% drop in total nickel exports for 2026. The market is now closely watching ore quotas for 2027, as the crackdown adds uncertainty to an already tight supply situation.
Meanwhile, copper prices fell 1.3% to $13,828.50 per ton, hitting a three-month low of $13,768.50. The decline mirrored losses in US tech stocks, particularly those related to chips and data centers. Investors are also reassessing the impact of the Democrats’ midterm election victory on AI-related infrastructure, which had previously boosted demand for copper and tin. Tin prices dropped 1.9% to $46,100 per ton, the lowest since April.
In China, the Yangshan premium, a key indicator of copper import demand, rose to $210 per ton, matching a record high from 2013. Other metals saw mixed movements, with aluminum up 1% to $3,078.50 per ton, zinc down 0.3% to $3,793, and lead gaining 0.6% to $1,893.