Copper and nickel fall on profit-taking

LONDON: Copper and nickel prices fell on Thursday as investors locked in profits, extending a retreat from their recent sharp rally.

Benchmark three-month copper on the London Metal Exchange fell 0.3% to $12,853 per metric ton by 1106 GMT. Copper hit a record high of $13,387.50 on Tuesday with concerns over tight mine supply and bets on future demand growth.

“The continued mirroring moves with precious metals suggest this is primarily profit-taking and position clean-up, rather than a major shift in the underlying trend,” analysts at Sucden Financial said in a note.

Growth in the artificial intelligence and defence sectors will boost global copper demand 50% by 2040, but supplies are expected to fall short by more than 10 million metric tons annually without more recycling and mining, consultancy S&P Global said.

Nickel slid 3.8% to $17,205 a ton as the Indonesian government refrained from disclosing its 2026 mining output quota, snapping a sharp rally since December which had seen the metal hit its highest since mid-2024 on Wednesday, at $18,800.

In a press briefing on Thursday, an official reiterated Indonesia’s plan to adjust nickel quotas to meet demand by local smelters and support prices. The policy could be reversed, analysts said, adding that a similar effort a year ago had limited effect.

Nickel stocks in LME-registered warehouses are at 276,300 tons, their highest since mid-2018, after inflows to the Asia-listed warehouses earlier this week.

Indicating that there is plenty of metal for nearby delivery, the discount of the cash LME nickel contract against the three-month forward widened to $224 a ton, the highest since March, on Wednesday from $144 on Friday.

LME aluminium and zinc eased 0.2% to $3,082.50 and $3,162, respectively, lead fell 0.6% to $2,047, while tin was steady at $44,310.