Copper Slumps From Record as Rapid Rally Fuels Profit-Taking

Group 1 - Nickel prices reached a 19-month high amid volatile trading, influenced by rising inventories and production risks [1] - Three-month futures for nickel saw significant fluctuations, with a notable increase of 10.5% on Tuesday, driven by output risks in Indonesia and increased investment in China's metals markets [2] - Indonesia plans to reduce nickel production to align supply with demand and will impose fines on miners violating forestry permits, potentially leading to bankruptcies and output disruptions [3] Group 2 - Despite the recent price surge, global nickel inventories have increased significantly due to years of high output from Indonesia, which has kept prices in check during a broader metals market rally [4] - A recent drop in nickel prices was attributed to profit-taking after a substantial increase, with analysts indicating that the nickel market remains in surplus [5] - Other base metals, including copper and aluminum, have also seen price increases due to supply constraints and trade issues, with copper reaching record levels earlier in the week [6]