Nickel notches 14-month high after Vale Indonesia halts mining

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 $3,000 mark for the first time since 2022.

Three-month nickel on the London Metal Exchange climbed as much as 1.8% to $16,945 a metric ton for its highest since October 2024. The metal used in stainless steel and batteries was up 1.4% at $16,875 by 1037 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% 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.

Copper set for biggest annual gain in 16 years, best performer among base metals

One entity holds between 30% and 40% 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% of open interest.

Aluminium nudged up 0.3% to $3,005, passing $3,000 for the first time in more than 3-1/2 years as the shutdown of the Mozal smelter in Mozambique looms and with aluminium imports into Europe now subject to a carbon levy.

Copper, the top performer on the LME in 2025 with a 42% annual gain, was up 0.6% at $12,497 a ton after hitting a record high of $12,960 on December 29. It was on course to end the week up 2.9%.

Zinc rose 0.4% to $3,130 a ton, lead edged down 0.1% to $2,009.50 and tin jumped 1% to $41,080.

The Shanghai Futures Exchange was closed on Friday for a public holiday.