Latest News

Nickel reaches 14-month high following Vale Indonesia's halt to mining

Nickel reaches 14-month high following Vale Indonesia's halt to mining
Nickel reaches 14-month high following Vale Indonesia's halt to mining

Nickel reached its highest level in over 14 months Friday, 'after Vale Indonesia suspended mining operations. Aluminium crossed the $3,000 barrier for the first time since 2022. The London Metal Exchange's three-month nickel rose as much as 1,8% to $16,945 per metric ton, its highest level since October 2024. By 1037 GMT, the metal used to make stainless steel and batteries had risen 1.4% to $16,875. PT Vale Indonesia Tbk said it was unable to?conduct mining operations due to a delay in the approval of its annual production plan.

The company said that it believes this delay won't?disrupt the overall sustainability of operations and that they expect the approval to be given in the near term. Nickel, which had been in a rut due to an oversupply of nickel for?months, gained 12.3% after Indonesia announced that it would?cut its ore production by a third by 2026. Mining Minister Bahlil Lahadalia announced this week that government will reduce mining output quotas in order to support commodity price.

Exchange data indicates that one entity owns between 30 and 40 percent of LME Nickel warrants (0#LMEWHL>), while the LME futures banding reports indicated a "significant long position" on the January nickel contract - equivalent to at least 40 percent of open interest. Aluminum climbed 0.3% to $3,000, surpassing $3,000 for the first time in over 3-1/2 years. This is due to the impending shutdown of the Mozal Smelter in Mozambique and the carbon tax on aluminium imported into Europe. Copper, which is expected to be the best performer in 2025 on 'the LME with a 42% gain per year, rose 0.6% to $12,497/ton after reaching a record high price of $12,960/ton on December 29. It was on track to finish the week with a 2.9% gain.

Zinc rose by 0.4%, to $3,130 per ton. Lead fell 0.1%, to $2,009.50, and tin rose 1%, to $41,080.

Shanghai Futures Exchange closed for the public holiday on Friday. (Reporting and editing by David Goodman. Additional reporting by Naveen Thkral in Singapore)

(source: Reuters)