Nickel prices surged to a five-week high on Thursday after Indonesia announced a crackdown on a major ore trader, while copper dropped to a three-month low amid pressure on tech stocks. Benchmark three-month nickel on the London Metal Exchange climbed 3.8% to $16,375 a metric ton, reaching a session high of $16,415. The rally came after Indonesia’s forestry task force said it would take action against companies linked to businessman Arif Kurniawan for operating illegally in forest areas, raising concerns over potential shortages.
Indonesian nickel producers have faced rising costs and tighter mining quotas in 2026. Macquarie analysts noted that total exports of nickel and products are expected to fall by 6% this year, with the market now focusing on ore quotas for 2027. Meanwhile, copper prices fell 1.3% to $13,828.50 a ton, touching a low of $13,768.50, as losses in US equities tied to chips and data centers weighed on the metal.
Investors are also considering the impact of greater scrutiny over artificial intelligence buildout following Democrats’ victory in the US midterm elections. Tin prices dropped 1.9% to $46,100 a ton, the lowest since April 2. In China, the Yangshan premium for copper rose to $210 a ton, matching a record high set in 2013 as inventories outside the US remain scarce.
Other metals saw mixed movements, with aluminum rising 1% to $3,078.50 a ton, zinc shedding 0.3% to $3,793, and lead adding 0.6% to $1,893.