Nickel climbed on Thursday, after Indonesia sharply cut this year’s mining quota for PT Weda Bay Nickel, the world’s biggest mine for the critical mineral.
The most-active nickel contract on the Shanghai Futures Exchange SNIcv1 climbed 2.49% to 140,570 yuan ($20,366.86) a metric ton as of 0250 GMT. The Shanghai contract surged as much as 3.14% earlier this session.
The benchmark three-month nickel on the London Metal Exchange CMNI3 rose 0.70% to $17,990 a ton, after rising 2.23% on Wednesday.
On Wednesday, French miner Eramet said the Indonesian mine had received an initial mining quota of 12 million wet metric tons for 2026, down from 32 million wet tons for 2025. It said it would seek an upward revision soon.
The mine is a joint venture between the French company and Chinese nickel and stainless steel giant Tsingshan, and Indonesia’s state-backed PT Antam.
The cut came after local media reported on Tuesday that Indonesia has so far approved nickel mining quotas of around 260 million to 270 million tons for 2026.
“The news has boosted market sentiment, and prices are expected to remain supported in the short term,” said Natalie Scott-Gray, StoneX’s senior metals analyst, in a note.
“However, it is worth remembering that Indonesia has historically sought to prevent prices rising sustainably above $18,000/t, as elevated prices risk undermining domestic EV sector competitiveness.”
Meanwhile, copper also advanced on Thursday, as a weak U.S. dollar provided support for greenback-denominated commodities by making them more affordable for investors using other currencies.