Copper hovers near record high; supply concerns keep nickel elevated

Copper hovered near record highs on Wednesday after a record-setting rally, while nickel remained near multi-month peaks on expectations of tighter supply from top producer Indonesia.

The most-traded copper contract on the Shanghai Futures Exchange gained 0.45% to 103,760 yuan ($14,854.69) a metric ton as of 0315 GMT, hovering below a record 105,500 yuan.

The benchmark three-month copper on the London Metal Exchange eased 0.49% to $13,173.50 a ton, after touching an all-time high of $13,387.50 on Tuesday.

Analysts at Citi raised its near-term copper price target to $14,000 a ton on Tuesday, citing strong market momentum breaching both their base and bullish case outlook in their December forecast.

But the bank kept its 2026 average forecast unchanged at $13,000.

January 2026 may mark the year’s price peak for copper, and without new market catalysts to support their $15,000 bull-case scenario, prices are likely to decline toward a more sustainable level of approximately $13,000, Citi analysts said.

Nickel held near its 19-month high, as the Indonesian government slashed the 2026 mining quota for the metal to boost price.

Shanghai nickel jumped 7.3% to 146,770 yuan a ton, after rising 8% to the highest since June 2024 at 147,720 yuan.

London nickel eased 0.29% to $18,470 yuan a ton, after hitting the highest since June 2024 on Tuesday at $18,785.

 Analysts at Sucden Financial saw the metal’s gain as “more vulnerable to near-term profit-taking”, citing weaker fundamental support.

Also leading the gain was tin, with Shanghai tin gaining 5.55% and London benchmark adding 2.04%. Meanwhile, investors are assessing the Federal Reserve’s interest rate path this month as policymakers are trying to

 balance the risks in inflation and job market.

Fed Governor Stephen Miran, whose term ends this month, said on Tuesday that the interest rates are overly restrictive and cuts of more than 100 basis points are needed this year to support growth.

The implication of the US attack on Venezuela and the capture of President Nicolas Maduro was still in focus.

Elsewhere, among SHFE base metals, aluminium rose 1.47%, zinc gained 0.62% and lead added 1.46%.

Among other LME base metals, aluminium was little changed, zinc dropped 0.23% and lead dipped 0.19%.