Nickel prices extended their rally for a fourth consecutive day, driven by expectations of potential production cuts by Chinese producers in Indonesia. The prospect of tighter supply pushed futures up as much as 2.9% to surpass $16,000 a ton on the London Metal Exchange, continuing a rebound from a nine-month low reached last Thursday.
The gains in nickel contrasted with a decline in copper prices, which fell after a significant delivery into exchange warehouses. The metal's drop highlighted the volatility in commodity markets as traders react to shifting supply dynamics.
The potential output cuts in Indonesia, a key global supplier of nickel, have raised concerns about future availability. If implemented, these cuts could further tighten the market and support higher prices in the near term.