Nickel price leaps to 5-week high on Indonesia crackdown
Climbed to its highest price in more than five weeks after Indonesia said it would act against companies linked to businessman Arif Kurniawan over alleged…
Indonesia’s forestry task force said on Thursday it would act against companies linked to businessman Arif Kurniawan, sending nickel to its highest price in more than five weeks as copper sank to a three-month low. The move has drawn attention to Indonesian ore supply, while pressure on technology stocks weighed on copper.
Benchmark three-month nickel on the London Metal Exchange rose 3.8% to $16,375 a metric ton as of 1700 GMT. It reached $16,415 during the session, its strongest level since September 25.
That was enough to move the market. Traders are weighing the implications of Indonesia’s planned action against a major ore trader as the country’s nickel producers face rising costs and tighter mining quotas.
Why did nickel prices rise?
Indonesia’s forestry task force said it would take action against companies owned by or affiliated with Kurniawan for operating illegally in forest areas. The task force said it had identified possible irregularities in mining governance, licensing and permitting processes.
Local media reports described Kurniawan as a former Glencore trader who controlled a large share of Indonesia’s nickel ore trade. That account has prompted concerns about possible shortages, adding a supply question to the market’s response to the government announcement.
Indonesia’s role matters well beyond the companies facing action: the country is a top producer, and its mining quotas shape expectations for ore availability. A tighter supply outlook could affect buyers of nickel used in stainless steel and rechargeable batteries.
Macquarie analysts said they expected Indonesian exports of nickel and products to decline by about 6% over the year as a whole, a steeper fall than they had forecast at the start of the year. They added that market attention had shifted to ore quotas for 2027.
Copper falls as technology shares weaken
Copper moved in the opposite direction. The metal fell 1.3% to $13,828.50 a ton, after touching $13,768.50, its weakest price since July 31.
The decline tracked steep losses in US equities tied to chips and data centers. Investors were also weighing the possibility of greater scrutiny of the artificial intelligence buildout following Democrats’ victory in the US midterm elections on Tuesday.
The AI investment narrative has supported copper and tin. Tin fell 1.9% to $46,100 a ton after reaching its lowest level since April 2, showing the pressure extended beyond copper.
China offered a counterpoint in the copper market. The Yangshan premium, a gauge of Chinese appetite for imported copper, rose to $210 a ton, matching a record high set in 2013 as inventories outside the US remained scarce.
Other London Metal Exchange prices were mixed. Aluminium rose 1% to $3,078.50 a ton, zinc shed 0.3% to $3,793, and lead added 0.6% to $1,893.
The Yangshan premium stood at $210 a ton, matching its record high set in 2013.
