LONDON: Nickel rose to its highest in more than 14 months on Friday after Vale’s Indonesia operation suspended mining activities while aluminium began the New Year by crossing the USD3,000 mark for the first time since 2022.
Three-month nickel on the London Metal Exchange rose as much as 1.8percent to USD16,950, the highest since October 2024, as funds covered short positions. It was trading up 0.9percent at USD16,785 as of 1700 GMT. PT Vale Indonesia Tbk was unable to carry out mining operations because of a delay in approval for its annual production plan, it said in a stock market filing.
“The company believes that this delay will not disrupt overall operational sustainability and expects that the … approval can be issued in the near future,” it said.
Having spent months in the doldrums owing to oversupply, nickel gained 12.3 percent in December after Indonesia proposed to cut ore output by a third in 2026. Mining Minister Bahlil Lahadalia said this week that the government would reduce mining output quotas to support commodity prices.
One entity holds between 30percent and 40percent of LME nickel warrants, exchange data shows, while the LME’s futures banding report indicated a significant long position on the January nickel contract, equivalent to at least 40 percent of open interest. Aluminium added 0.8 percent to USD3,018 a ton, passing USD3,000 for the first time in more than 3-1/2 years as the shutdown of the Mozal smelter in Mozambique looms.
LME aluminium stocks of 509,250 tons are the lowest since October 29. Copper, the top performer on the LME in 2025 with a 42percent annual gain, was up 0.6 percent at USD12,492.50 a ton after hitting a record high of USD12,960 on December 29.
Hundreds of miners began a strike on Friday at Capstone Copper’s Mantoverde copper and gold mine in northern Chile after talks between the main union and the company on new labour contracts broke down. Zinc rose 0.6 percent to USD3,135.50 a ton, lead lost 0.4percent to USD2,003.50 and tin fell 0.9 percent to USD40,180.
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