Nickel leaps to five-week high as Indonesia cracks down on trader
XLB•Nickel rose to its highest in more than five weeks after Indonesia said it would act against companies linked to businessman Arif Kurniawan. Three-month nickel gained 3% to $16,255 a ton, while Shanghai nickel climbed 5.3% to 122,550 yuan.
1. Nickel prices climb
Benchmark three-month nickel on the London Metal Exchange rose 3% to $16,255 a metric ton, after earlier reaching $16,360, its highest since September 28. The most-traded Shanghai nickel contract ended daytime trading up 5.3% at a two-week high of 122,550 yuan a ton, its biggest daily gain since January.
2. Indonesia targets companies
Indonesia's forestry task force said it would act against companies owned by or affiliated with Arif Kurniawan for operating illegally 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. Nickel producers in the country have faced rising costs and tighter mining quotas, prompting coordinated output cuts. Macquarie analysts expected total exports of nickel and products to fall about 6% for the year and said the market was focusing on ore quotas for 2027.
