Nickel notches two-week high as Indonesia cracks down on trader

Nickel prices reached a two-week peak on Thursday after Indonesia said it would act against businesses connected to ore trader Arif Kurniawan, raising concerns about future availability. Business Recorder reported that three-month nickel on the London Metal Exchange gained 2.2% to $16,125 a ton by 1010 GMT, after touching $16,255. The most-traded Shanghai nickel contract ended 5.3% higher at 122,550 yuan ($18,375) a ton.

Indonesia’s forestry task force cited possible problems involving mining governance and permits, and said companies linked to Kurniawan had operated illegally in forest areas. The country’s nickel producers are also dealing with higher costs, sulphuric acid shortages and stricter mining quotas, leading to coordinated production cuts. Other metals rose too: aluminium added 1.6%, while copper edged up 0.2%; zinc, lead and tin also advanced.