Nickel hits two-week high as Indonesia cracks down on trader-linked companies
XLB•Nickel rose to a two-week high after Indonesia said it would act against companies linked to businessman Arif Kurniawan, adding to supply concerns. LME nickel gained 2.2% to $16,125 a ton, while Shanghai nickel closed 5.3% higher at 122,550 yuan.
1. Nickel prices climb
Benchmark three-month nickel on the London Metal Exchange rose 2.2% to $16,125 a metric ton, after reaching $16,255, its highest since October 22. The most-traded Shanghai nickel contract closed up 5.3% at 122,550 yuan a ton, its biggest daily gain since January.
2. Indonesia targets companies
Indonesia's forestry task force said it would take action against companies owned by or affiliated with Arif Kurniawan for illegal operations in forest areas, after identifying possible irregularities in mining governance, licensing and permitting. Local media reports said Kurniawan was a former Glencore trader who controlled a large share of Indonesia's nickel ore trade.
3. Supply pressures persist
Nickel producers in Indonesia have faced rising production costs amid sulphuric acid shortages and tighter ore mining quotas this year, prompting coordinated output cuts. Aluminium, copper, zinc, lead and tin also rose, while copper gains were limited by concerns that the Democrats' US midterm victory could restrain the AI buildout.
