(Jan 13): Aluminium fell from the highest level in more than three years, as investors mulled what’s next for metals after a powerful start to 2026.
Commodities have enjoyed a bullish run into the new year, with copper hitting a record above US$13,000 a tonne last week, and aluminium notching its highest since April 2022 on Monday. Still, concerns remain that underlying demand — especially in China — could soften, while geopolitical risks are still elevated.
President Donald Trump’s announcement this week that he plans to charge tariffs on any country doing business with Iran risks complications with China, just months after the world’s two biggest economies agreed a trade truce. While the precise impact remains unclear, a resurgence in tensions between the two nations could hurt risk assets, including metals.
The LMEX Index that tracks the main six base metals closed at the highest since March 2022 on Monday, after a five-month gain. The rise has been underpinned by expectations that supplies will struggle to keep up with demand, as the Federal Reserve keeps cutting interest rates. The artificial intelligence boom has also spurred enthusiasm for metals needed for data centres and electronics, particularly copper, which has also been aided by speculative buying in China.
Among the half-dozen, tin has been the standout performer on the London Metal Exchange (LME) this year, nearing a record above US$51,000 a tonne after it surged almost 40% in 2025. A crackdown on miners in major producer Indonesia crimped supply last year, and the industry is waiting to see how exports unfold.
Aluminium was 0.8% lower at US$3,158.50 a tonne on the LME as of 7.48am in London, while copper fell 0.7% to US$13,117.50 a tonne. Tin steadied.
See also: Congo shipping first copper to US under Mercuria-backed venture
Iron ore dipped 0.9% to US$108.25 a tonne on the Singapore Exchange, after closing at the highest level since October 2024 on Monday.
Uploaded by Felyx Teoh
