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 steady near multi-month peaks on expectations of tighter supply from top producer Indonesia.

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading 0.11% higher at 103,410 yuan ($14,800.13) a metric ton, lingering below a record 105,500 yuan.

The benchmark three-month copper on the London Metal Exchange eased 0.87% to $13,122.50 a ton as of 0700 GMT, after touching an all-time high of $13,387.50 on Tuesday.

Citi on Tuesday raised its near-term copper price target to $14,000 a ton, citing strong market momentum that has breached both its base and bullish case outlook in its December forecast. However, the bank kept its 2026 average forecast unchanged at $13,000.

January may mark the peak for copper prices this year, and without fresh market catalysts to support its $15,000 bull-case scenario, prices are likely to decline towards a more sustainable level of approximately $13,000, Citi said.

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

Shanghai nickel closed daytime trading, hitting the maximum limit of 8% to 147,720 yuan a ton, the highest since June 2024.

London nickel nudged 0.11% higher to $18,545 yuan a ton, after hitting the highest since June 2024 on Tuesday at $18,785.Analysts at Sucden Financial see the metal's rise as "more vulnerable to near-term profit-taking", citing weaker fundamental support.

Tin also led gains, with Shanghai tin rising 5.33% and the London benchmark adding 1.22%.

Meanwhile, investors will assess the Federal Reserve's interest rate path this month for more cues on moves in commodities.

Fed Governor Stephen Miran said on Tuesday that interest rates are overly restrictive and cuts of more than 100 basis points are needed this year to support growth.The implication of the U.S. attack on Venezuela and the capture of President Nicolas Maduro is still in focus.

Elsewhere, among SHFE base metals, aluminium rose 1.18%, zinc gained 0.81% and lead added 1.83%.

Among other LME base metals, aluminium dropped 0.37%, zinc dipped 0.28% and lead added 0.19%.