Nickel rose to the highest in almost two years, as reduced mining quotas in major producer Indonesia and a global sulfur shortage tighten the supply outlook for the battery metal.
Futures in London have risen about about 7% since the start of the Iran war, which is driving a surge in prices of sulfur — a key reagent used in processing — and fueling concerns over disruptions to global mining, including mixed-hydroxide precipitate production in Indonesia and copper leaching in Africa.
Nickel climbed as much as 2.8% on Monday, before giving up most of its gains. Other base metals were mixed, as efforts to resume peace talks between the US and Iran remained at an impasse, two months into a conflict that’s dented the outlook for global economic growth.
Nickel mining in Indonesia is already under pressure after the country slashed its production quota to revive prices for the metal. The Asian country accounts for well over half of global production, thanks to a wave of Chinese investment in smelters.
“Market sentiment on nickel remains positive as traders await further upside catalysts pointing to a substantial production cut in MHP,” Jinrui Futures Co. said in a note, referring to the mixed-hydroxide precipitate, an intermediate product containing nickel.
Nickel was up 0.7% at $19,155 a ton by 4:56 p.m. local time on the London Metal Exchange, after touching its highest level since June 2024. Copper fell 0.8%, while tin was down 2%.
