Nickel notches two-week high as Indonesia cracks down on trader
Nickel jumped to its highest level in two weeks on Thursday after top producer Indonesia said it would clamp down on companies linked to a major ore trader, adding to concerns over tightening supply of the metal. Benchmark three-month nickel on the London Metal Exchange was up 2.2% to $16,125 a metric ton as of 1010 GMT, having earlier climbed as much as 3% to $16,255, its highest since October…
Nickel reached a two-week high on Thursday as Indonesia announced plans to crack down on companies linked to a major ore trader, exacerbating concerns over the metal's supply. The London Metal Exchange's benchmark three-month nickel rose 2.2% to $16,125 per metric ton, hitting a high not seen since October 22. On the Shanghai Futures Exchange, the most-traded nickel contract surged 5.3% to 122,550 yuan ($18,375) per ton, also marking a two-week peak.
Indonesia's forestry task force vowed to take action against companies affiliated with businessman Arif Kurniawan, who operates illegally in forest areas due to identified irregularities in mining governance and licensing. Kurniawan, a former Glencore trader, reportedly controls a significant share of Indonesia's nickel ore trade.
Rising production costs due to sulphuric acid shortages and tighter ore mining quotas have already forced nickel producers to cut output. Meanwhile, copper rebounded from a three-month low, edging up 0.2% to $14,044 as a weaker dollar made greenback-denominated commodities more affordable. In China, the Yangshan premium for imported copper returned to $205 per ton, its highest level in over a decade, reflecting heightened demand from the country's top copper consumer.
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