LONDON: Copper prices rose on Friday, heading for their fourth week of growth on renewed bets on a future demand boost, while aluminium hit its highest since April 2022.
Benchmark three-month copper on the London Metal Exchange gained 2.1percent to USD12,984 a metric ton by 1705 GMT. The metal, used in power and construction, hit a record high of USD13,387.50 on Tuesday after rising 42 percent in 2025 - its biggest annual gain since 2009 - due to concerns about tightened supply and bets on future surging demand from the AI boom and energy transition. Highlighting these bets among global miners, Rio Tinto is in early talks to buy Glencore, the companies said, in what could create the world’s largest mining company with a combined market value of nearly USD207 billion.
This follows Anglo American and Teck Resources’ pending merger to create a copper-focused industry heavyweight. Copper’s sharp rally has pushed prices into new territory, making it harder for traders to identify resistance and support levels. From a technical perspective, this momentum makes it easier for prices to continue climbing, said Dan Smith, managing director at Commodity Market Analytics.
Two stimulus packages introduced by top metals consumer China at the end of 2025 are also supporting wider sentiment and giving copper and other base metals a strong start to the year, Smith added.
These measures include an initial allocation of USD8.9 billion for a consumer goods trade-in scheme in 2026 and investment plans, involving two major construction projects and USD42 billion in central budget funding.
Among other LME metals, aluminium was up 1.7 percent at USD3,142.50 after hitting USD3,162 for its highest since April 2022.
Signalling some tightness for the nearby supply, the spread between the LME cash and the three-month aluminium contract swung to a premium from a discount for the first time since end-October. The premium was last at USD8 a ton.
Zinc added 0.6 percent to USD3,153.50, lead gained 1.1 percent to USD2,048, tin climbed 4.4percent to USD45,400 and nickel rose 3.1 percent to USD17,675.
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