METALS-Nickel gains after Indonesia cuts quota for world's biggest nickel mine

Feb 12 (Reuters) - 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 ERMT.PA 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.

The SHFE most-traded copper SCFcv1 was up 0.45% to 102,390 yuan a ton, and the benchmark three-month copper CMCU3 also climbed, adding 0.42% to $13,221.50 a ton.

Among other SHFE base metals, aluminium SAFcv1 posted sole loss, nudging 0.08% lower. Zinc SZNcv1 climbed 0.41%, lead SPBcv1 ticked 0.06% higher, and tin SSNcv1 rose 0.84%.

Elsewhere on the LME, aluminium CMAL3 added 0.50%, zinc CMZN3 rose 0.68%, tin CMSN3 was up 0.70% and lead CMPB3 was unchanged.

Thursday, February 12

DATA/EVENTS (GMT)

0700 UK GDP Est 3M/3M Dec

0700 UK GDP Estimate MM, YY Dec

0700 UK Services MM, YY Dec

0700 UK Manufacturing Output MM Dec

0700 UK GDP Prelim QQ, YY Q4

1330 US Initial Jobless Clm 7 Feb, w/e

1500 US Existing Home Sales Jan

($1 = 6.9019 Chinese yuan renminbi)